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Jennifer recently earned a degree in accounting and her first employment opportunity is an accountant at a major corporation. The 401(k) portion of her employment
Jennifer recently earned a degree in accounting and her first employment opportunity is an accountant at a major corporation. The 401(k) portion of her employment package has a personal investment cap at 20% of her salary and the employer contribution portion is 50% of her contribution. Her annual salary is $56,500 and she chose to invest 14% annually. FUTURE VALUE of $1 Periods 3% 4% 8 1.267 1.369 9 1.305 1.423 10 1.344 1.480 11 1.384 1.539 FUTURE VALUE of ANNUITY of $1 Periods 3% 4% 8 8.892 9.214 9 10.159 10.583 10 11.464 12.006 11 12.808 13.486 Required: Calculate the value of her 401(k) after 10 years at 4%, and then calculate the value of her 401(k) had she invested the maximum amount that her employer would match
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