Mavis Invests $10 000 Today in a Managed Fund to Supplement

question 24

Multiple Choice

Mavis invests $10 000 today in a managed fund to supplement her employer funded superannuation scheme.She expects to earn 8 per cent,compounded annually,on her money for the next 26 years.After that,she wants to be more conservative,so only expects to earn 5 per cent,compounded annually.How much money will she have in her account when she retires 38 years from now,assuming this is the only deposit she makes into the fund?

• A)$129 411.20
• B)$132 827.88
• C)$134 616.56
• D)$141 919.67
• E)$142 003.12

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