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Assume that you begin work on January 1 of next year as a financial analyst at a salary of $80,000. You decide to participate in
Assume that you begin work on January 1 of next year as a financial analyst at a salary of $80,000. You decide to participate in the company's 401K plan which offers no company matching. You decide to live frugally for the first few years before your salary increases so that you can make the maximum annual contribution of $22,500 to the 401K. Assume you make your first annual contribution of $22,500 into the 401K on December 31 of next year. Then you make additional contributions of the same size on the same date for the next 29 years, for a total of 30 contributing years. Based on your investment selections for the 401K, you expect to earn a nominal geometric average rate of return of 9% over this 30 year period. Assuming annual compounding, what is the expected balance in your 401K thirty years from now? Report your answer rounded to the nearest dollar (i.e. rounded to zero decimal places)
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