High School

We appreciate your visit to Michelle just graduated from Concordia and started her new job working as a Software Developer for Amazon as a remote employee from Montreal One of. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Michelle just graduated from Concordia and started her new job working as a Software Developer for Amazon as a remote employee from Montreal. One of the benefits offered is to participate in the company’s retirement plan. Even though Michelle is a long way off of retirement, she knows that this is an awesome benefit as Amazon matches her contributions dollar for dollar. The plan averages a return of 8% compounded weekly. Michelle is 23 years old and plans to work until age 60. If she contributes $250 at the beginning of each month, with her employer doing the same, how much will she have in her retirement plan at retirement?

a. $1,365,554

b. $1,370,436

c. $1,374,681

d. $1,361,560

e. $1,355,876

Answer :

Final answer:

Michelle will have approximately $1,370,436 in her retirement plan at retirement.

Explanation:

To calculate the amount Michelle will have in her retirement plan at retirement, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

  • A is the final amount
  • P is the principal amount (initial contribution)
  • r is the annual interest rate
  • n is the number of times interest is compounded per year
  • t is the number of years

In this case, Michelle plans to work for 37 years (60 - 23) and the retirement plan averages a return of 8% compounded weekly. Since Michelle contributes $250 at the beginning of each month and her employer matches the contribution, the principal amount for each contribution is $500.

Using the formula, we can calculate the final amount:

A = $500(1 + 0.08/52)^(52*37)

Calculating this expression gives us approximately $1,370,436.

Learn more about calculating retirement savings with employer matching here:

https://brainly.com/question/33089410

#SPJ14

Thanks for taking the time to read Michelle just graduated from Concordia and started her new job working as a Software Developer for Amazon as a remote employee from Montreal One of. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada