Please answer (f)
M When you start your first job after graduating from Ohio State on January 1st, 2023, you will begin saving a portion of your salary in your company's 401k savings plan. Your salary is $65,000 annually, of which you decide to put 10% in the savings plan at the end of each year. (In reality, a portion is saved from each paycheck, but we will use annual deposits for simplicity.) Assume the savings plan earns 9% interest annually. Your company provides matching contributions to the savings plan on the first 4% of compensation that you contribute to the savings plan. For example, if you contribute 2% of your salary, your company will match that and deposit an amount equal to 2% of your salary, too. A total of 4% of your salary is deposited into the savings plan. Another example, if you contribute 30% of your salary, your company will only match the first 4% contributed and deposit an amount equal to 4% of your salary. A total of 34% of your salary is deposited into the savings plan. a) What is the amount of each deposit "A" (A = your contribution+your employer's) on December 31st in 2023, 2024, 2025, and 2026 (today)? b) What is the total amount of money that is in your savings plan account today? c) Calculate the total amount of cash, excluding interest, that was actually taken out of your paycheck over the course of 4 years. Consider the following three scenarios (in parts d, e, and f) independently of each other: d) Scenario 1: For some reason, you stop contributing to your company's savings plan after the 4 deposits above, so the current amount in your savings plan (part b) earns interest without any additional contributions. What amount would be in your savings account in 2032 (6 years from today)? e) Scenario 2: Let's say, you and your company contribute the same amount (part a) every year for the next 6 years until July 1, 2032 (10 deposits total). Now, how much would be in your savings account in 2032? NM + 9100 5a) 5b) 5c) 5d) f) Scenario 3(Continuation of Scenario 2): While you are making these depositis into your 401k, you are also buying a $3,000 a year vacation, at the end of the year, on your Citi Double Cash Credit Card and NOT paying it off. The APR on your card is 25.74% (very real). You buy 6 vacations from 2026 -2032. How much money do you have in 2032 if you decide to pay off your credit card in 2032? A= $36,400.00 $41,615.47 $36,400.00 $69,793.32 $138,255.66 5e) N 009 5f)
