Question
Barry has just become eligible for his employer-sponsored retirement plan. Barry is 35 and plans to retire at 65. Barry calculates that he can contribute
Barry has just become eligible for his employer-sponsored retirement plan. Barry is 35 and plans to retire at 65. Barry calculates that he can contribute $2,900 per year to his plan. Barry's employer will match this amount. If Barry can earn a return of 5% on his investment, he will have $385,345 at retirement. Assuming a return of 5%,how much would Barry have if he could invest an additional $1,250 per year that his employer would match beginning at age 35? If Barry could invest an additional $1,250 per year that his employer would match beginning at age 35, at retirement, he would have how much?
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