Question
Ferdinands employer will match 50% of his $250 monthly contributions to his 401(k). This means that Ferdinands employer will put 50% of $250 = $125
Ferdinand’s employer will match 50% of his $250 monthly contributions to his 401(k). This means that Ferdinand’s employer will put 50% of $250 = $125 into Ferdinand’s 401(k) account each month in addition to Ferdinand’s $250. What a swell benefit!
How much will he have after 40 years if his account compounds monthly at 3% APR?
How much did Ferdinand deposit into this account?
How much did the employer put in?
How much interest did he gain?
What was Ferdinand’s total investment taking into account his tax savings?
In other words, how much less did Ferdinand see in his paychecks in order to fund this investment account?
What was Ferdinand’s profit?
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Tax Research
Authors: Barbara H. Karlin
4th Edition
013601531X, 978-0136015314
