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I need help finding the correct answer. The answers in the box are incorrect An employee contributes $15,200 to a 401(k) plan each year, and
I need help finding the correct answer. The answers in the box are incorrect
An employee contributes $15,200 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,520. The employee can allocate the contributions among equitles (earning 12 percent annually), bonds (earning 5 percent annually), and money market securities (earning 3 percent annually). The employee expects to work at the company 15 years. The employee can contribute annually along one of the three following patterns Equities Bonds Money market securities Option 1 Option 2 Option 3 Option 1 70% $ 1,009,161 S 938,796 865,431 30 $ 0 100% Answer is complete but not entirely correct. Option 2 60% 35 5 100% Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 15 years. (Do not round intermediate calculations. Round your answers to the nearest whole number. (e.g., 32)) Option 3 50% Return to question 40 10 100% Step by Step Solution
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