Question
QUESTION 8 What is the dollar cost average price over a 6 month period given the following information? Annual Gross Salary = $50,000 Month 1,
QUESTION 8
What is the dollar cost average price over a 6 month period given the following information?
Annual Gross Salary = $50,000
Month 1, 2, 3 Annual Contribution Rate as a % of Gross Salary = 3.00%
Month 4, 5, 6 Annual Contribution Rate as a % of Gross Salary = 4.50%
* Monthly contributions are used to purchase a security based on the below prices.
Security Prices
Month Price
1 27.45
2 27.34
3 28.00
4 28.60
5 30.00
6 22.90
A.
$27.38
B.
$27.11
C.
$10.42
D.
$27.19
5 points
QUESTION 9
What is the maximum tax deferred amount that may be contributed to an employee's traditional 401K plan in 2016. In 2016, the employee is 55 years old and earned $52,000 in salary. His 401K plan allows maximum catch-up contributions. He has always contributed the maximum allowable amount each year.
A.
$24,000
B.
$53,000
C.
$58,000
D.
$59,000
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