Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alison makes $ 8 5 , 0 0 0 a year. Her employer offers her a 5 % match into her 4 0 1 k

Alison makes $85,000 a year. Her employer offers her a 5% match into her 401k retirement fund (meaning that she contributes 5% of her income and her employer also contributes 5% of her salary). She also expects her salary to increase by 2% each year (excatly every 12 months. In excel increase the contribution on month 1 of each year). If she contributes every month into her 401k for the next 40 years, and she earns 12% interest, how much will Alison have in her 401k by the time she retires?
Group of answer choices
$928,027,000,000
$8,416,000
$9,775,000
$340,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Understanding And Conducting Information Systems Auditing

Authors: Arif Ahmed, Veena Hingarh

1st Edition

1118343743, 978-1118343746

More Books

Students also viewed these Accounting questions

Question

HAZOP FOR GASIFIER FOR GASIFIER FOR GASIFIER .

Answered: 1 week ago

Question

4. Support and enliven your speech with effective research

Answered: 1 week ago

Question

3. Choose an appropriate topic and develop it

Answered: 1 week ago