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An employee contributes $15,700 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,570. The employee can allocate

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An employee contributes $15,700 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,570. The employee can allocate the contributions among equities (earning 12 percent annually), bonds (earning 6 percent annually), and money market securities (earning 4 percent annually). The employee expects to work at the company 15 years. The employee can contribute annually along one of the three following patterns: Equities Bonds Money market securities Option 1 700 30 0 1001 Option 2 600 35 5 1001 Option 3 508 40 10 100% 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. (0.9., 32)) $ Option 1 Option 2 Option 3 $ $ 557488 527.430 499,163

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