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An employee contributes $ 1 6 , 1 0 0 to a 4 0 1 ( k ) plan each year, and the company matches
An employee contributes $ to a k plan each year, and the company matches percent of this annually, or $ The employee can allocate the contributions among equities earning percent annually bonds earning percent annually and money market securities earning percent annually The employee expects to work at the company years. The employee can contribute annually along one of the three following patterns:
Option Option Option
Equities
Bonds
Money market securities
Calculate the terminal value of the k plan for each of the options, assuming all returns and contributions remain constant over the years.
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