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1. 2. Show process and thannks! Alicia is currently 27 years old and works full-time. Her employer offers a 401(k) plan. When Alicia was in
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Alicia is currently 27 years old and works full-time. Her employer offers a 401(k) plan. When Alicia was in school she took the FIN 601 course and knows she needs to save for retirement. Therefore, she plans to contribute $10,000 per year to her 401(k) plan each year while working. Her employer will provide her with a match that will be equal to $5,000 each year. Alicia plans to retire when she is 67 years old and expects to earn 5% annually on her investments. How much will Alicia have in her 401(k) plan by the time she retires (67 years old)? Nino has completed many life expectancy calculators and because he managers his health risk by eating well and exercising, he expects he will live until 97 years old. Nino has projected he will need $80,000 each year during retirement, above and beyond what Social Security will provide him. How much should Nino have saved by age 67 (retirement age) to fund his costs in retirement? Assume that the interest rate he can earn on investments in retirement is 4%Step by Step Solution
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