Back to Assignment Tools Attempts Average 7 A 1. Apply what you've learned - Managing Your Employer's Retirement Plan Scenario: You are 29-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $65,000 paid every two weekt. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 4 of your annual salary, you are in a 25% marginal tax rate, Read each of the statemloses below and indicate whether it reflects an advantage associated with wating in a tu cheitered retirement account An Advantage Notan Advantage Statement Taxes are due immediately, so you have the benefit of knowing what tax rate will be applied to your account By being able to make contributions with pre-tax income, you have additional funds with which to make larger deposits You have the flexibility of borrowing from your retirement account. The maximum dollar amount your employer will contribute to your 401(k) account this year it 52.600 Assume that you contribute 9% of your gross income to your 401(k) account. How much will you contribute annually and per pay period to your retirement account Q Search this cour Ch 01: Apply What You've Learned - Understanding Personal Finance Assume that you contribute 9% of your gross income to your 401(k) account. How much will you contribute annually and per pay-period to your retirement account? O $5,850 and $488, respectively $5,850 and $225, respectively O $260,000 and $244, respectively $975 and $293, respectively O $5,850 and $975, respectively w Given your employer's contribution matching program, a total of will be deposited into your retirement account each pay period. The actual tax savings for the employee from their portion of the contributions will be in income taxes per year. (Round all dollar amounts to the nearest whole dollar. Do not round intermediate calculations.) Suppose that you make contributions of $225 every pay period for the following number of years. Further assume that your retirement account earns an average return of 8% per year and the company matches 50% of the employee contribution Use the following table to compute the following three values, rounded to the nearest whole dollar 4% 5% 6% 790 8% 9% Pay periods 234 196,3849 188.2900 180.6519 173.4412 156.6305 160.1945 Ch : Apply What You've learned - Understanding Personal Finance 806 461.7209 409.4666 365.7305 328.8959 297.6796 271.0593 Value of retirement account when you are: 39 years old (260 pay periods) 49 years old (520 pay periods) 59 years old (780 pay periods) All other things being equat , what is the best type of investment income? Tax-exempt income O Taxable income Tax-deferred income Tax-sheltered income When seeking professional financial advice, financial planner is the most likely to offer unbiased advice Grade It Now Save & Continue Continue without saving "se the following table to compute the following three values, rounded to the nearest whole dollar. 4% 5% 6% 7% 8% 9% Pay periods 234 196.3849 188.2900 180.6519 173.4412 166.6305 160.1945 260 214.1580 204.4526 195.3505 186.8090 178.7886 171.2528 520 357.7566 328.5189 302.6353 279.6629 259.2222 240.9872 780 403.8051 361.5551 325.8162 295.4078 269.3832 454.0431 4$1.7209 806 409.4666 365.7305 328.8959 297.6796 271.0593 Value of retirement account when you are: 39 years old (260 pay periods) 49 years old (520 pay periods) 59 years old (780 pay periods)