Jane has been saving $200 in her retirement account each month for the last 20 years and plans to continue contributing $200 each month for the next 20 years. Her account has been earning an 8 percent annual interest rate and she expects to earn the same rate for the next 20 years. Her twin brother, Hal, has not saved anything for the last 20 years. Due to sibling rivalry, he wants to have as much as Jane is expected to have at the end of 20 years. If Hal expects to earn the same annual interest rate as Jane, how much must Hal save each month to achieve his goal?
A. $400.00
B. $1,569.85
C. $1,185.36
D. $2,909.17
Answer: C
You might also like to view...
The more frequently compounding takes place, the lower the effective return on a savings account
Indicate whether the statement is true or false.
A project is currently scheduled to be finished on its normal earliest completion date. The project manager has the opportunity to earn a bonus if the project can be completed three weeks ahead of schedule
The increase in project direct costs related to crashing activities would be $40,000. Also, project indirect costs are $15,000 per week. What is the smallest bonus that the project manager should accept if he or she wants to avoid increasing overall project costs? A) less than or equal to $5,000 B) greater than $5000 but less than or equal to $10,000 C) greater than $10,000 but less than or equal to $15,000 D) greater than $15,000
Typically, most network television advertising time is sold as
A. adjacencies. B. affiliated offerings. C. sponsorships. D. participations. E. spot announcements.
Cash flows are affected by financial planning decisions. Which of the following is not correct?
A) Insurance payments are a cash outflow B) Investing in stock is a cash outflow C) Buying on time results in a cash inflow D) Income is a cash inflow