Question
Axious to establish good financial habits, Masako structures a 3-stage savings plan for her early professional years. The savings plan has these details: Save $100
Axious to establish good financial habits, Masako structures a 3-stage savings plan for her early professional years. The savings plan has these details: Save $100 per month for two years. She believes she can earn an APR of just 2.0%. Increase her monthly savings to $450 for the next two years. She estimates she can earn an APR of 5.0% for these two years. After those first four years, she will work hard to save $1,200 a month for the next ten years. Her APR will be 9.0%. She will keep all of her savings invested, never withdrawing, and her balances will always earn the new APR.
At the end of these 14 years, and assuming monthly compounding, what should Masako's savings balance be? Group of answer choices about $208,308 about $211,062 about $266,627
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