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After you graduate and start your new job, you decide to make the maximum contribution to your 401k (assume $19,500 all at once, now). The
After you graduate and start your new job, you decide to make the maximum contribution to your 401k (assume $19,500 all at once, now). The mutual fund you select has averaged 10% growth per year and you will use this value as your MARR. You then no further contributions and the mutual fund meets the anticipated 10%/yr growth for a decade. You are interested in the balance of the 401k at the end of the decade. a. Draw the cash flow diagram (any perspective). [3 pts] b. What is the balance of your 401k after the 10 years? [ 4pts ] c. What would be the balance be of the 401k after another 5 years, assuming the mutual fund kept on performing similarly? [3 pts]
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