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An employee contributes 10 percent of her $25,000 salary into the companys 401(k) plan. The company matches 40 percent of the first 5 percent of
An employee contributes 10 percent of her $25,000 salary into the companys 401(k) plan. The company matches 40 percent of the first 5 percent of the employees salary. The 401(k) plan expects to yield a 7 percent rate of return. Assuming the employees salary, employers contribution, and 401(k) yield remain constant over her 30-year career, when the employee retires, the 401(k) will be worth:
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