Answer is B Data for Question 15At the end of each year, Smith's employer makes a contribution to a fund on his behalf.4.00% of salaryAnnual contribution:Salary increase:Investment return:3.00% per year, compounded annually6.75% per year, compounded annually$60,000Smith's salary for the first year:X-the balance in the fund for Smith at the end of 20 years.Question 15In what range is X?(A)(B)(C)(D)(E)Less than $113,000$113,000 but less than $121,000$121,000 but less than $129,000$129,000 but less than $137,000$137,000 or more

The details of contributions made by Smith Employer to a fund are:Starting salary for the first…

Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Investment return: Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) Less than $113,000 (B) $113,000 but less than $121,000 (C) $121,000 but less than $129,000 (D) $129,000 but less than $137,000 $137,000 or more

Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Investment return: Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) Less than $113,000 (B) $113,000 but less than $121,000 (C) $121,000 but less than $129,000 (D) $129,000 but less than $137,000 $137,000 or more

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter2: Career Planning

Section: Chapter Questions

Problem 3DTM

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