Joshua Vernier received a raise after his first year on the job to $43,800 from his initial salary of $42,000. Inflation averaged 2.8% for the year. What was his real income after the raise? Enter answer... 43 Megan's Aunt Carol told her she would give Megan $1,000 at the end of each year for the next 3 years to help with her expenses. Assuming an interest rate of 2%, what is the present value of that stream of payments? Enter answer... D 44. Tyler Winkle's employer makes a matching contribution of $1200 a year to his 401(k) retirement account at work. If the dollar amount of the employer's contribution increases 4% annually, how much will the employer contribute to the plan in the 20th year from now? Enter answer... D45. Harry and his wife Belinda have discussed starting a family but have decided to wait for perhaps 5 years in order to get their careers off to a good start and organize their personal finances. They also know that having children is expensive. They figure that the extra expense of a child would be about $5,000 annually until high school graduation. How much money will they likely cumulatively spend on a child over 18 years assuming a 2% inflation rate? Enter answer... D 46. Beginning at age 27, Kimberly invests $2000 per year for ten years and then never sets aside another penny. Her sister Kaitlyn waits ten years and then invests $2000 per year for the next 30 years. Assuming they both earn 7%, how much will each twin have at age 67? Joshua Vernier received a raise after his first year on the job to $43,800 from his initial salary of $42,000. Inflation averaged 2.8% for the year. What was his real income after the raise? Enter answer... 43 Megan's Aunt Carol told her she would give Megan $1,000 at the end of each year for the next 3 years to help with her expenses. Assuming an interest rate of 2%, what is the present value of that stream of payments? Enter answer... D 44. Tyler Winkle's employer makes a matching contribution of $1200 a year to his 401(k) retirement account at work. If the dollar amount of the employer's contribution increases 4% annually, how much will the employer contribute to the plan in the 20th year from now? Enter answer... D45. Harry and his wife Belinda have discussed starting a family but have decided to wait for perhaps 5 years in order to get their careers off to a good start and organize their personal finances. They also know that having children is expensive. They figure that the extra expense of a child would be about $5,000 annually until high school graduation. How much money will they likely cumulatively spend on a child over 18 years assuming a 2% inflation rate? Enter answer... D 46. Beginning at age 27, Kimberly invests $2000 per year for ten years and then never sets aside another penny. Her sister Kaitlyn waits ten years and then invests $2000 per year for the next 30 years. Assuming they both earn 7%, how much will each twin have at age 67
