she'll receive: 2500 * (0.07 /2 ) = $87.50 semi-annually
invested $5000 into a fund that is expected to grow by 3.5% per year.
How long will it take the fund she invested in to be worth $10,000?
time to double her money...
t = ln(2) / ln(1.035)
= 0.69315 / 0.0344
= 20.14879 years
or use "the rule of 72" as an approximation: 72 / 3.5 = 20.57 years
Sandy’s gross annual income is $51,350. She is paid biweekly and has 5% deducted from her paycheck for her 403(b). Her employer matches her deduction, up to 4%. How much is deposited into Sandy’s 403(b) each payday?
# of pay periods in a year: 52wks / 2 = 26
gross pay per paycheck: 51,350 / 26 = $1.975
amount added to 403(b) each payday: 1,975 * (0.05 + 0.04) = $177.75
The answer is a number
Sandy made several investments. She bought 1000 shares of a company’s stock for $8.60/share, she bought a bond with a face value of $2500 and a coupon rate of 7%, and she invested $5000 into a fund that is expected to grow by 3.5% per year.
The bond Sandy purchased will mature in 10 years. How much interest will she receive semiannually?
How long will it take the fund she invested in to be worth $10,000?
Sandy’s gross annual income is $51,350. She is paid biweekly and has 5% deducted from her paycheck for her 403(b). Her employer matches her deduction, up to 4%. How much is deposited into Sandy’s 403(b) each payday?
Thank you!
