Now assume the growth of the account is not discrete (12 compounding per year), but instead grows continuously. If your client did NOT add any monthly contributions to the 401K account, what will the initial value of $7,800 grow to after 10 years.

Client Information Current age = 29 Planned age of retirement = 63 Assumed to live to the age = 96 Monthly expenses anticipated in retirement = $1,900.00

New House and Car Information Current amount saved for house down payment = $1,800 Amount being saved monthly for house down payment = $225 Years they plan to save for the downpayment = 6 Anticipated price of home they are buying = $540,000 Home loan annual interest rate (anticipated) = 7.3% Anticipated price of car loan = $32,800.00 Car loan annual interest rate (anticipated) = 7.5% Car loan length = 6 years

Basic Investments Information 401K Initial Account Balance= $7,800 401K monthly contribution = $500 Roth Initial Account Balance = $4,000 Roth monthly contribution = $220 Mutual Funds Initial Accounts Balance = $2,460 Mutual Funds monthly contribution= $60

Lottery Winnings (After Tax)

$9055.61 - This will be used mid-way through the project. Do not use it until you are told to do so.

Rates of Return and Inflation Information These rates of return apply to ALL of your investments and accounts.

*Unless otherwise specified in a problem or context, assume monthly compounding...Ask if you are not sure.

Assumed rate of investment growth PRE-retire (during working years) = 5.4% Assumed rate of investment growth POST-retire (during retirement) = 3.4% Assumed annual inflation rate = 3.1% (We assume this compounds annually, not monthly)