Solve the Problem. Round to the Nearest Cent

question 50

Multiple Choice

Solve the problem. Round to the nearest cent.
-Joe wants to start an SEP-IRA that will have $460,000 in it when he retires in 15 years. How much should he invest semiannually in his IRA to do this if the interest is 15% compounded semiannually?

• A) $44.35.77
• B) $17,612.13
• C) $4790.74
• D) $4448.77

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Definitions:

Reimbursement

The act of compensating someone for an expense they have incurred, often related to business costs or healthcare expenses.

Fringe Benefits

These are additional compensations provided to employees beyond their regular salaries, such as health insurance, car allowances, or retirement benefits.

Merit Pay Systems

Incentive programs that reward employees based on their performance and productivity.

Profit-Sharing Plans

A compensation strategy where employees receive a share of the company's profits, aligning their interests with the company's performance and fostering a team-oriented culture.