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Dan starts a new job, and he wants to set up a 401(K)-retirement fund. The 401(K) earns 6.4% APR compounded bi-weekly. 1. Suppose that Dan
Dan starts a new job, and he wants to set up a 401(K)-retirement fund. The 401(K) earns 6.4\% APR compounded bi-weekly. 1. Suppose that Dan wants to contribute $80 per paycheck (bi-weekly) into his retirement fund. a. How much money would Dan have in 25 years? b. How much would have come from Dan's deposits? c. How much would have come from interest? 2. Suppose instead that Dan wants to have $300,000 in his 401(K) in order to retire. How much should he deposit each paycheck in order to have exactly $300,000 in 25 years? Dan starts a new job, and he wants to set up a 401(K)-retirement fund. The 401(K) earns 6.4\% APR compounded bi-weekly. 1. Suppose that Dan wants to contribute $80 per paycheck (bi-weekly) into his retirement fund. a. How much money would Dan have in 25 years? b. How much would have come from Dan's deposits? c. How much would have come from interest? 2. Suppose instead that Dan wants to have $300,000 in his 401(K) in order to retire. How much should he deposit each paycheck in order to have exactly $300,000 in 25 years
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