Your Employer Contributes $25 a Week to Your Retirement Plan

question 77

Multiple Choice

Your employer contributes $25 a week to your retirement plan. Assume that you work for your employer for another twenty years and that the applicable discount rate is 5%. Given these assumptions,what is this employee benefit worth to you today?

• A) $13,144.43
• B) $15,920.55
• C) $16,430.54
• D) $16,446.34
• E) $16,519.02

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Definitions:

PC

Stands for Personal Computer, a multi-purpose electronic computing device designed for individual use, typically consisting of a central processing unit, memory, and input/output features.

RAM

Random Access Memory, a type of computer memory that can be accessed randomly, any byte of memory can be accessed without touching the preceding bytes.

Temporary

Pertaining to a limited period of time, not permanent.

Volatile

Referring to substances that easily evaporate at normal temperatures or, in financial markets, to investments subject to rapid and unpredictable changes in value.