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Maureen and Todd were 2 5 years old when they graduated from the Robert H . Smith School of Business with their MBA s and

Maureen and Todd were 25 years old when they graduated from the Robert H. Smith School of Business with their MBAs and began working at MGM Inc. Maureen started saving for retirement immediately by investing $3600 a month in MGMs 401(k) that returned 9.0% a year on average until she retired at 65 years of age (40 years later). Todd, however, did not begin saving until he was 35. At 35 he began investing $300 a month in MGMs 401(k) until he was 65(30 years later).
1. How much did Maureen have in her 401(k) when she retired at 65?
Group of answer choices
$1,216,377
$1,345,924
$983,560
$997,850
2. How much additional interest would Maureen earn in her 401(k) if Maureen deposited $300 every month and interest was compounded monthly until she reached 65?
Group of answer choices
$997,850
$1,345,924
$1,216,377
$1,404,396
3. How much will Todd have in his 401(k) when he retires at 65? Compounded annually.
Group of answer choices
$396,767
$543,898
$514,232
$490,707
4. How much will Todd have to invest monthly to have $1,404,396 by the time he retires at 65(in 30 years)?
Group of answer choices
$903.87
$767.12
$828,32
$897.42

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