a. Suppose that between the ages of 22 and 38, you contribute $1000 per year to a 401(k) and your employer contributes $500 per year on your behalf. The interest rate is 8.9% compounded annually. What is the value of the 401(k) after 16 years?

b. Suppose that after 16 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65?

c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?