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An employee contributes 10 percent of his $90,000 salary into the companys 401(k) plan. The company matches 40 percent of the first 6 percent of
An employee contributes 10 percent of his $90,000 salary into the companys 401(k) plan. The company matches 40 percent of the first 6 percent of the employees salary. The employee in the 31 percent tax bracket and the 401(k) plan excepts to yield an five percent (5%) rate of return.
Calculate the employees return on this plan for one year. (Round to the nearest decimal point.)
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