ertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $2,500 per month during the last 20 years. 14) How much would Martha’s account hold at retirement if she earned an annual rate of 11.5%? A) $3,347,918.85 B) $1,940,849.36 C) $2,999,789.12 *D) $4,425,537.6. First compute the FV of the 60-month annuity and then compound the lump-sum for the next 420 months. Use a periodic rate. 15) 15) How much would Bertha’s account hold at retirement if she also earned an annual rate of 11.5%? A) $3,350,918.25 *B) $2,312,752.65 C) $1,978,400.10
Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $2,500 per month during the last 20 years.
14) How much would Martha’s account hold at retirement if she earned an annual rate of 11.5%?
A) $3,347,918.85
B) $1,940,849.36
C) $2,999,789.12
*D) $4,425,537.6. First compute the FV of the 60-month
15) How much would Bertha’s account hold at retirement if she also earned an annual rate of 11.5%?
A) $3,350,918.25
*B) $2,312,752.65
C) $1,978,400.10
D) $2,711,542.16.
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