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Note:(Nick earns $31,800 per year, and he's paid monthly. His employer offers a 401(k) plan with 50% matching up to 9% of salary). Suppose Nick
Note:(Nick earns $31,800 per year, and he's paid monthly. His employer offers a 401(k) plan with 50% matching up to 9% of salary).
- Suppose Nick contributes the minimum amount of money to his 401(k) to get the maximum contribution from his employer. How much money willhis employer contribute to his 401(k) each month?
- Suppose Nickcontributes the minimum amount of money to his 401(k) each month to get the maximum contribution from his employer. Nick is 26 years old, and he would like to retire when he's 65 years old. How much money will Nick accumulate by the time he retires?Assume hisinvestments will earn an interest rate of 6%, which is a reasonable inflation-adjusted return for a diversified investment portfolio.
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