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?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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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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