Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nicky just graduated from engineering at Concordia and landed her first job paying an annual gross salary of $84,000. On the first day of
Nicky just graduated from engineering at Concordia and landed her first job paying an annual gross salary of $84,000. On the first day of work, she was presented with all the company benefits. She knew to take advantage of the company pension plan as the company matches 50% of her contributions in this plan at the end of each month. The plan averages 5.5% interest compounded monthly. Nicky is 24 years old and plans to retire at age 65. She receives her pay at the beginning of each month and contributes 8% of her gross monthly salary immediately into her retirement plan. How much will she have accumulated in her plan when she retires? A $1,555,306 B $1,335,778 $1,560,059 D $1,557,682 $1,129,972
Step by Step Solution
★★★★★
3.53 Rating (163 Votes )
There are 3 Steps involved in it
Step: 1
1 Total Contribution per Month Monthly salary Contribution 1 Company Matching 7000 8 150 840 2 Accum...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started