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, 2 , 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.

Option 1 =

Option 2 =

Option 3 =