Many employers provide 401(k) plans which take your pre-tax earnings (up to $20,500 per year if under 50 years of age) and invest it in stocks, bonds, or money funds. Besides the tax-deferral benefits of the plans, your company will typically invest 50 on every dollar you invest up to 6% of your pay. Assume you invest $4,800.00 annually in your company's 401(k), and it earns 9.75% interest. Using the blanks below, calculate how much your investment is worth at the end of 20 years.

a) your investment:

b) Company matching funds (50c on the dollar):

C) Total amount invested each year:

d) interest rate earned :

e) Balance in 20 years:

Now, calculate your tax savings for this year when you invest in a 401(k) plan. Assuming you're in the 28% tax bracket (last dollar earned is the tax bracket) how much tax can you defer on a $4,800 investment? $____________________________