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An employee contributes $16,900 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,690. The employee can allocate

An employee contributes $16,900 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,690. The employee can allocate the contributions among equities (earning 14 percent annually), bonds (earning 7 percent annually), and money market securities (earning 5 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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