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An employee contributes $15,200 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,520. The employee can allocate

An employee contributes $15,200 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,520. The employee can allocate the contributions among equities (earning 12 percent annually), bonds (earning 5 percent annually), and money market securities (earning 3 percent annually). The employee expects to work at the company 15 years. The employee can contribute annually along one of the three following patterns:

--------------------------------Option 1 Option 2 Option 3
Equities 70% 60% 50%
Bonds 30 35 40
Money market securities 0 5 10
100% 100% 100%

Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 15 years. (Do not round intermediate calculations. Round your answers to the nearest whole number. (e.g., 32))

Option 1_____

Option 2_____

Option 3_____

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