About the retirement account

Assignment Help Business Economics

Reference no: EM131094500

Bob made a salary of $70,000 in 2011. Bob invested 5% of his salary in a retirement account in 2011. Assume Bob receives a 3% raise each future year and continues to invest 5% of his salary each year in his retirement account. What amount of money would Bob have in his retirement account in 2020 if he can earn 7% per year on his investments? That is, the total value of Bob’s investments at the time of his 10th deposit is closest to… As always, assume end-of-period cash flows. (5)

a) $997.54

b) $555.56

c) $54,528.86

d) $ 313.98

e) $1,044.14

f) $ 1,932

g) $27,721.84

Reference no: EM131094500

Questions Cloud

About conformity being a socially acceptable means : Merton talks about conformity being a socially acceptable means to attain our goals. Is this always the case? Is there a place where conformity does not work? How about people who don't conform to views in our society?

Problem algebraically and present graph associated : Suppose that the money supply is equal to $500 Billion and the demand for money is given by M ^d= 1000-100R, where R is the interest rate in percentages. If the demand for money increases by 5%, what would be the size and direction of an open market ..

Block can be deliberate or the result of social structure : Do a Library search for an articles about Robert Merton's Structural Strain Theory. This theory talks about the kinds of responses that one might expect when the "normal" legitimate means to acquiring the "good" stuff in life is blocked. The block ca..

Present graphical interpretation of the problem : Where Yp is potential GDP, Y is real GDP in billion of dollars and P is GDP deflator. By how much overall should the government expenditures change to achieve potential GDP level if MPC=0.8? Calculate the size of inflation/deflation associated with t..

About the retirement account : Bob made a salary of $70,000 in 2011. Bob invested 5% of his salary in a retirement account in 2011. Assume Bob receives a 3% raise each future year and continues to invest 5% of his salary each year in his retirement account. What amount of money wo..

Results in the lowest level of cyclical unemployment : Which of the following situations results in the lowest level of cyclical unemployment? A. undesired inventory accumulation. B. total value of goods supplied exceeds total value of goods demanded. C. A period of significant inflation. D. desired savi..

Details of the loan called for uniform payments : Twenty years ago you took out a $200,000 loan. The details of the loan called for uniform payments to occur every month for thirty years. Interest rates have dropped significantly, and you have decided to refinance the loan. If the original loan inte..

What is the deadweight loss in this market : Cournot Duopoly). Suppose there are two firms, Firm 1 and Firm 2 in a market. Each firm simultaneously chooses a quantity of output to produce (q1 and q2). Total market output is given by Q = q1 + q2. What is the deadweight loss in this market?

User Account

All Pages