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PLEASEEEE!!!!! Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she contributes $2,000 to the
PLEASEEEE!!!!!
Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she contributes $2,000 to the plan, and her employer contributes an equal amount. Paulina thinks she will retire at age 63 and figures she will live to age 90. The plan allows for two types of Investments. One offers a 3% risk-free real rate of return. The other offers an expected return of 12% and has a standard deviation of 39%. Paulina Lesky is 27 years old and has accumulated $7,500 in her self now has 20% of her money in the risk-free Investment and 80% In the risky Investment. She plans to continue saving at the same rate and keep the same proportions Invested in each of the investments. Her salary will grow at the same rate as Inflation. How much can Paulina be sure of having in the safe account at retirement? Multiple Choice O $45,473 O $62,557 O $78.943 O $54.968 $74,643 Chris Silvers is 39 years old and has accumulated $128,000 in his self-directed defined contribution pension plan. Each year he contributes $2,500 to the plan, and his employer contributes an equal amount. Chris thinks he will retire at age 62 and figures he will live to age 86. The plan allows for two types of Investments. One offers a 4% risk-free real rate of return. The other offers an expected return of 11% and has a standard deviation of 37%. Chris now has 25% of his money in the risk-free Investment and 75% in the risky Investment. He plans to continue saving at the same rate and keep the same proportions Invested in each of the Investments. His salary will grow at the same rate as Inflation. Of the total amount of new funds that will be invested by Chris and by his employer on his behalf, how much will Chris put into the safe account each year, how much Into the risky account? Multiple Choice $2.500: $2,500 $3,200: $1,800 $3.000: $2,000 U $1.250: $3,750 $2.400: $2.600Step by Step Solution
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