Gretchen is 30 years old and has just changed to a new job. She has $37,500 in the retirement plan from her former employer. She can roll all of that money into the retirement plan of the new employer. She will also contribute $4,800 at the end of each year into her new employer's plan. If the rolled-over money and the new contributions both earn an annual return of 5.85%, compounded annually, how much should she expect to have when she retires in 35 years?
A. $792,398
B. $799,885
C. $810,643
D. $820,912
E. $839,696
Olivia is 30 years old and has just changed to a new job. She has $37,500 in the retirement plan from her former employer. She can roll all of that money into the retirement plan of the new employer. She will also contribute $400 at the end of each month ($4,800 per year) into her new employer's plan. If the rolled-over money and the new contributions both earn an annual return of 5.85%, compounded monthly, how much should she expect to have when she retires in 35 years?
A. $860,728
B. $843,576
C. $839,696
D. $820,912
E. $810,643
What is the present value of a monthly $150 annuity payment over
5 years if interest rates are 8.64% (APR)?
A. $7,067
B. $7,235
C. $7,287
D. $7,318
E. $7,340
11. What is the present value of a monthly $150 annuity due payment
over 5 years if interest rates are 8.64% (APR)?
A. $7,067
B. $7,235
C. $7,287
D. $7,318
E. $7,340
(1) Existing Retirement Plan Value = $ 37500, Annual Deposits = $ 4800, Savings Tenure = 35 years and Annual Interest Earned on Deposits = 5.85 %
Therefore, Total Value of Retirement Plan = 37500 x (1.0585)^(35) + 4800 x (1.0585)^(34) + 4800 x (1.0585)^(33) +...............................+ 4800 x (1.0585) + 4800 = $ 792397.5867 ~ $ 792398
Hence, the correct option is (A)
NOTE: Please raise separate queries for solutions to the remaining unrelated questions, as one query is restricted to the solution of only one complete question with up to four sub-parts.
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