Stephanie Is Going to Contribute $160 on the First of Each

question 118

Multiple Choice

Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement account. Her employer will provide a match of 50 percent. In other words, her employer will add $80 to the amount Stephanie saves. If both Stephanie and her employer continue to do this and she can earn a monthly interest rate of .45 percent, how much will she have in her retirement account 35 years from now? 

• A) $336,264.14 
• B) $204,286.67 
• C) $199,312.04 
• D) $268,418.78 
• E) $299,547.97 

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Definitions:

Walnut Trees

Deciduous trees known for their production of walnuts, valued for their wood and nuts, grown in temperate regions worldwide.

Significance Levels

Statistical thresholds used to determine the probability of rejecting a null hypothesis, indicating the strength of evidence required to conclude that a result is statistically significant.

Confidence Levels

Measures the degree of certainty or the probability that a parameter lies within a specified interval under a given distribution.

Employee Pension Package

A retirement plan offered by employers to their employees, usually based on factors like salary and years of service.