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Jim is investing in his company s 4 0 1 ( k ) retirement plan, funding 6 % of his salary to get a 3

Jim is investing in his companys 401(k) retirement plan, funding 6% of his salary to get a 3% match (thus effectively investing 9% of his annual salary). He invests in each of the three available funds. 50% of his contributions go into investment A, which has an average return of 6.91% with a standard deviation of 12.89%. The rest of his contributions are equally divided between investment B, which has an average return of 8.94% with a standard deviation of 15.21%, and investment C, which has an average return of 9.88% with a standard deviation of 17.14%. Jim is currently 24 years old and earns $55,000 this year, but anticipates a pay raise of, on average, 2.83% with a standard deviation of 0.72%. Develop a simulation model to predict his 401(k) balance at age 60. Ensure you iterate your simulation multiple times (between 400 and 20,000).

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