Question
Carlos has an opportunity to save $290 per month at an APR of 8.65% in a 401K plan through work. He plans to retire in
Carlos has an opportunity to save $290 per month at an APR of 8.65% in a 401K plan through work. He plans to retire in 25 years. The income taxes are at 26% for him.
(1) What are Carlos's tax savings over the course of his investment? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) $
(2) How much will Carlos's monthly take-home pay decrease? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) $
(3) If Carlos's company offers a 15% matching contribution, use Excel's FV function to determine how much his investment will be worth when he retires. (Express your answer rounded correctly to the nearest cent!) $
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