1. You earn $70,000 and your employer offers a 75% match on your 401(k) contributions up to a maximum employer contribution of 4.5%. If you contribute 5% of your salary and stay with this same company for the next 42 years, how much will you have accumulated by retirement (42 years from now) if you earn 7.5% on your investments?

$694,833

$926,444

$1,320,183

$1,621,277

2. Assume that you are 31 years old and plan to retire at age 62. You currently have $89,732 saved for retirement and can save $458 at the end of every month for retirement. What annual rate of interest must you earn in order to have $2,000,000 available at the start of retirement?

12.24%

8.38%

1.02%

0.70%