Question
9. Olivia is 30 years old and has just changed to a new job. She has $37,500 in the retirement plan from her former employer.
9. Olivia is 30 years old and has just changed to a new job. She has $37,500 in the retirement plan from her former employer. She can roll all of that money into the retirement plan of the new employer. She will also contribute $400 at the end of each month ($4,800 per year) into her new employer's plan. If the rolled-over money and the new contributions both earn an annual return of 5.85%, compounded monthly, how much should she expect to have when she retires in 35 years? A. $860,728
10. What is the present value of a monthly $150 annuity payment over 5 years if interest rates are 8.64% (APR)?
11. What is the present value of a monthly $150 annuity due payment over 5 years if interest rates are 8.64% (APR)?
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
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