Question
21. Johnny just graduated from college, he has a new job and his employer offers a 401k with a dollar for dollar match up to
21. Johnny just graduated from college, he has a new job and his employer offers a 401k with a dollar for dollar match up to 5% of his salary. Johnny is planning to contribute the full 5% of his salary which amounts to $500 a month. How much will Johnny have in his 401k after 35 years if he earns 7%?
22. Jenny is 40 years old and she just started a new job and her employer offers a 403b. Jenny is planning to retire at 65 and her goal is to have $750,000 in her 403b when she retires. How much will Jenny have to invest each month if she earns 9%?
Bonus: Alexa is saving for retirement, she is 30 years old and wants to retire at 60. She estimates that she will need to have $1.2 million to retire comfortably. She currently deposits $550 a month into her account 401k, what APR does she need to earn?
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