Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
Bartleby Related Questions Icon

Related questions

Question

Reece is comparing retirement plans with prospective employers.​ ABC, Inc., offering a salary of ​$38000​, will match 75 percent of his contributions up to 10 percent of his​ salary, his maximum contribution. XYZ Company will match 100 percent of his contribution up to 6 percent of​ salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a ​$35000 salary. If Reece assumes that he will contribute the maximum amount allowed and keep these​ first-year retirement funds invested for 30 years with a return of 9 ​percent, how much would each account be​ worth? How can he use this information when choosing an​ employer? 

Reece assumes that he will contribute the maximum amount allowed and keep these​ first-year retirement funds invested for 30 years with a return of 9 ​percent, the ABC account will be worth ​$?  ​(Round to the nearest​ cent.)    

Reece is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of $38,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. XYZ Company will match 100 percent of his contribution up to 6 percent
of salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a $35,000 salary. If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a return of 9 percent, how
much would each account be worth? How can he use this information when choosing an employer? Click on the table icon to view the FVIF table
If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a return of 9 percent, the ABC account will be worth $
(Round to the nearest cent.)
Data table
11%
Compound Sum of $1 (FVIF)
n 5%
6% 7%
8%
9% 10%
12%
20 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 8.0623 9.6463
25 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 13.5855 17.0001
26 3.5557 4.5494 5.8074 7.3964 9.3992 11.9182 15.0799 | 19.0401
27 3.7335 4.8223 6.2139 7.9881 10.2451 13.1100 16.7386 21.3249
28 3.9201 5.1117 6.6488 8.6271 11.1671 14.4210 18.5799 23.8839
|29|4.1161 5.4184 7.1143 9.3173 12.1722 15.8631 20.6237 26.7499
30 4.3219 5.7435 7.6123 10.0627 13.2677 17.4494 22.8923 | 29.9599
31 4.5380 6.0881 8.1451 10.8677 14.4618 19.1943 25.4104 33.5551
|32 4.7649 6.4534 8.7153 11.7371 15.7633 21.1138 28.2056 37.5817
33 5.0032 6.8406 9.3253 12.6760 17.1820 23.2252 31.3082 42.0915
|34| 5.2533 7.2510 9.9781 13.6901 18.7284 25.5477 34.7521 47.1425
35 5.5160 7.6861 10.6766 14.7853 20.4140 28.1024 38.5749 52.7996
expand button
Transcribed Image Text:Reece is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of $38,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. XYZ Company will match 100 percent of his contribution up to 6 percent of salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a $35,000 salary. If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a return of 9 percent, how much would each account be worth? How can he use this information when choosing an employer? Click on the table icon to view the FVIF table If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a return of 9 percent, the ABC account will be worth $ (Round to the nearest cent.) Data table 11% Compound Sum of $1 (FVIF) n 5% 6% 7% 8% 9% 10% 12% 20 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 8.0623 9.6463 25 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 13.5855 17.0001 26 3.5557 4.5494 5.8074 7.3964 9.3992 11.9182 15.0799 | 19.0401 27 3.7335 4.8223 6.2139 7.9881 10.2451 13.1100 16.7386 21.3249 28 3.9201 5.1117 6.6488 8.6271 11.1671 14.4210 18.5799 23.8839 |29|4.1161 5.4184 7.1143 9.3173 12.1722 15.8631 20.6237 26.7499 30 4.3219 5.7435 7.6123 10.0627 13.2677 17.4494 22.8923 | 29.9599 31 4.5380 6.0881 8.1451 10.8677 14.4618 19.1943 25.4104 33.5551 |32 4.7649 6.4534 8.7153 11.7371 15.7633 21.1138 28.2056 37.5817 33 5.0032 6.8406 9.3253 12.6760 17.1820 23.2252 31.3082 42.0915 |34| 5.2533 7.2510 9.9781 13.6901 18.7284 25.5477 34.7521 47.1425 35 5.5160 7.6861 10.6766 14.7853 20.4140 28.1024 38.5749 52.7996
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education