Your new job offers a savings plan that pays 0.25 percent in interest each month. You...

Your new job offers a savings plan that pays 0.25 percent in interest each month. You can't participate in the plan, however, until you have 7 years with the company. At that time you will start saving $1000 a month for the next 21 years.

	How much will you have in this savings account in 28 years? Round your answer to two decimals.
	$ 748,582.54 748,582.54 Incorrect

Another perk of your new job is that, after 7 years with the company, you will also get an increase of $175 in your monthly salary. Assume you would stay with the company for 21 more years after getting the salary increase, and that you discount at 0.25 percent each month.

	What is this salary increase worth to you today? Round your answer to two decimals.
	$ 32,689.25 32,689.25 Incorrect

Solutions

Expert Solution

Calculation is shown below:

Working is given below:

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Your bank offers a savings account that pays a stated (nominal) interest rate of 10 percent...

Your bank offers a savings account that pays a stated (nominal) interest rate of 10 percent per year, compounded semiannually. Requirement 1: If you deposit $15,000 today into this account and leave it invested for 5 years, how much will you have in the account at the end of Year 5? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Account Balance $ Requirement...

Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent...

Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent per year, compounded quarterly. Requirement 1: If you deposit $8,000 today into this account and leave it invested for 6 years, how much will you have in the account at the end of Year 6? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Account Balance $ Requirement 2: What...

You have just started a new job that offers a retirement savings account. You have two...

You have just started a new job that offers a retirement savings account. You have two options: You can invest 5% of your monthly wages at 2% OR You can invest 4% of your monthly wages at 4%. Both are compounded monthly. b. Assume that you will always make $45,000 annually, how much will you have saved with the better plan after 15 years? c.Assume that you will always make $45,000 annually, how much will you have saved with the...

You put $50 in your savings account at the end of each month.

You put $50 in your savings account at the end of each month. The nominal interest rate is 14% annual nominal compounded monthly, and you have at the end $2,221.14. what its your annuity value?

You leave your $50,000 a year job and invest your savings of $40.000 (on which you were earning 10 percent annual interest) to start your own business

You leave your $50,000 a year job and invest your savings of $40.000 (on which you were earning 10 percent annual interest) to start your own business. In the first year, your business generated $100,000 in total revenue and had to pay $40,000 in explicit costs. The economic profit generated by this gym was a $60,000 b. $6,000 c. greater than your accounting profit because economic profit is always greater than accounting profit. d. $10,000

You can deposit your savings at the Texas Capital Bank, which offers to pay 13.6 percent...

You can deposit your savings at the Texas Capital Bank, which offers to pay 13.6 percent annually, interest compounded quarterly, or at Midfirst Bank, which will pay interest of 13.4 percent annually, compounded daily. With this information, which bank’s offer should you choose? Texas Capital Bank because its Effective Annual Rate (EAR) is higher. Midfirst Bank because its EAR is higher. Midfirst Bank because the nominal rate (Inom) is lower Texas Capital Bank because the (Inom) is higher. Cannot compare,...

South Central Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Northern Bank pays...

South Central Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Northern Bank pays 2.5 percent simple interest on its savings accounts. You want to deposit sufficient funds today so that you will have $1,500 in your account 2 years from today. The amount you must deposit today: will be greater if you invest with South Central Bank. is the same regardless of which bank you choose because they both pay the same rate of interest. is the...

First City Bank pays 8 percent simple interest on its savings account balances

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts =

Your employer offers a number of benefits including retirement savings. Five percent of your annual salary...

Your employer offers a number of benefits including retirement savings. Five percent of your annual salary will go towards your retirement fund and the employer will match that amount. Your retirement fund offers three different packages: 1. Invest in T-Bills 2. Invest in small cap stocks 3. Invest in the large cap stocks Discuss the risk-return profile of each option. Which one would you choose?

Suppose you saved $483 at the end of each month for 37 years and your savings...

Suppose you saved $483 at the end of each month for 37 years and your savings earned an interest rate of 3.5%. If instead you had saved for only 11 years, how much would you have had to save each month in order to reach the same final balance? Round to the nearest cent.

Subjects