At the End of This Month,Les Will Start Saving $150

question 37

Multiple Choice

At the end of this month,Les will start saving $150 a month for retirement through his company's retirement plan.His employer will contribute an additional $0.50 for every $1.00 that he saves.If he is employed by this firm for 30 more years and earns an average of 10.5 percent on his retirement savings,how much will Les have in his retirement account 30 years from now?

• A)$389,406.19
• B)$401,005.25
• C)$540,311.67
• D)$566,190.22
• E)$603,289.01

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Definitions:

Liabilities

Measurable obligations resulting from a past transaction; they are expected to be settled in the future by transferring assets or providing services.

Return On Assets

A profitability ratio that indicates how efficiently a company uses its assets to produce profit, calculated by dividing net income by total assets.

Net Profit Margin

A financial performance metric that shows the percentage of sales that has turned into profits, calculated by dividing net profit by revenue.