Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

1. 2. You just got hired at a really good job that has a retirement savings matching program. The program promises to match up to

1.

image text in transcribed

2. image text in transcribed

You just got hired at a really good job that has a retirement savings matching program. The program promises to match up to 5% of your salary if you put it in a retirement account. You choose to save 5% of your monthly income each month. If your retirement account has a growth rate of 6.7% per year, and your monthly income is $6,000 per month, how much will you have after 35 years? Assume that your retirement account compounds each month. For a concrete example of the matching program: if your monthly salary was $12,000, then you would contribute 5% which is $600, and you employer would also contribute the same amount ($600) for a total of $1,200 each month put into your retirement account Make your answer positive and round to the nearest dollar. How long would it take for $369.37 to grow to be $635.04 if your interest rate is 11.50%? Answer in years to the nearest hundredth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction accounting and financial management

Authors: Steven j. Peterson

2nd Edition

978-0135017111

Students also viewed these Finance questions