Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marcel has an opportunity to save $ 2 9 5 per month at an APR of 4 . 2 5 % in a 4 0

Marcel has an opportunity to save $295 per month at an APR of 4.25% in a 401K plan through work. He plans to retire in 30 years. The income taxes are at 35% for him.
(1) How much interest will Marcel have earned on his investment by the time he retires? Use Excel's FV function to help answer this question.
(Express your answer rounded correctly to the nearest cent!)
$
(2) Use Excel's FV function to determine how much his investment will be worth when he retires based solely on his contributions.
(Express your answer rounded correctly to the nearest cent!)
$
(3) If Marcel's company offers a 10% matching contribution, how much would the company contribute to Marcel's 401K by the time he retires?
(Express your answer rounded correctly to the nearest cent!)
$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HBR Guide To Finance Basics For Managers

Authors: Harvard Business Review

1st Edition

1422187306, 978-1422187302

More Books

Students also viewed these Finance questions

Question

8. Do the organizations fringe benefits reflect diversity?

Answered: 1 week ago

Question

7. Do the organizations social activities reflect diversity?

Answered: 1 week ago