Question
Kimberly has a 401k plan with her employer, and her account balance is currently $150,000. She recently earned a promotion and a sizeable increase in
Kimberly has a 401k plan with her employer, and her account balance is currently $150,000. She recently earned a promotion and a sizeable increase in her salary. She now earns $100,000 per year and would like to maximize her contributions to the retirement plan. She has decided to change her contribution amount to the maximum amount allowable by law ($19,500 annually in 2021) plus she gets the company's maximum matching contribution of 3% of her salary. How much will she have in her retirement plan account when she retires in 20 years if she invests monthly and earns an average annual return on her investments of 8%?
HINT: Add the total annual contribution together and divide by 12 to get the monthly investment amount.
(Submit your answer rounded to the nearest dollar.)
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