Amy Parker, a 22-year-old and newly hired marine biologist, has opened a 401(k) retirement plan with her employer. Amy's contribution, plus that of her employer, amounts to

$2,400

per year starting at age 23. Amy expects this amount to increase by

4%

each year until she retires at the age of

62

(there will be

40

EOY payments). What is the compounded future value of Amy's 401(k) plan, in millions of $, if it earns an annual interest rate of

7%

per year?

Question content area bottom

Part 1

(a) The compounded future value of Amy's 401(k) plan is

$enter your response here

million.

(Round to three decimal places.)

(b) What will be the compounded future value if the plan earns an annual interest rate of

4%

per year (instead of

7%

per

year)?

$enter your response here

million.

(Round to three decimal places.)