Respuesta :
The amount saved in 10 years is = $1,04,461.13
The correct option is B.
Future:
An annuity is a series of payments that are distributed evenly over time.
One way to express the future value of an annuity of payment P for n years is,
Total salary is $65000
The interest rate is 5.32%
Trent save 8% of his salary every year.
Company puts 4.6% of salary every year.
[tex]\text { Future Value }=\mathrm{P} \times \frac{\left(1+\frac{i}{n}\right)^{n t}}{\frac{i}{n}}[/tex]
Given:
Total salary is $65000
The interest rate is 5.32%
Trent save 8% of his salary every year.
Company puts 4.6%of salary every year.
The 8% of salary is calculated as:
[tex]\text { Amount } &=\frac{8}{100} \times 65000\\[/tex]
[tex]&=\$ 5200[/tex]
The following information is available on the company's put:
[tex]\text { Amount } &=\frac{4.6}{100} \times 65000\\[/tex]
[tex]&=\$ 2990[/tex]
Total amount as follows:
[tex]\begin{aligned}\text { Amount } &=5200+2990 \\&=\$ 8190\end{aligned}[/tex]
The future value can be obtained as follows
[tex]\begin{aligned}\mathrm{FV} &=8190 \times \frac{(1+0.053)^{10}-1}{0.053} \\&=8190 \times 12.75 \\&=1,04,461.13\ \\\end{aligned}[/tex]
Hence, the amount saved in 10 years is = $1,04,461.13
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