Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2,300 each year from his bonus and $430 per month from his regular salary. Johan will make his initial contributions of $2,300 and $430 today. a. What will the plan be worth after 20 years if it earns 7.8% compounded monthly? b. How much did Johan’s contributions earn during the 20 years?
Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2,300 each year from his bonus and $430 per month from his regular salary. Johan will make his initial contributions of $2,300 and $430 today. a. What will the plan be worth after 20 years if it earns 7.8% compounded monthly? b. How much did Johan’s contributions earn during the 20 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2,300 each year from his bonus and $430 per month from his regular salary. Johan will make his initial contributions of $2,300 and $430 today.
a. What will the plan be worth after 20 years if it earns 7.8% compounded monthly?
b. How much did Johan’s contributions earn during the 20 years?
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