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The 401K is the account you can deposit part of your salary before tax, eg all the federal, state, and local tax will not be calculated until they deduction the 401K deposit from your salary. Now we can look can two periods. When you are in your first job, you have stable contributions annually for monthly in real life) Once you left the job, the interest will continue to accrue, but there will be no new contribution to this account.

When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into the company's 401K plan, which averages 8% Interest per year, Five years later, you move to another job and start a new 401K plan. You never get around to merging the funds in the two places. If the birst plan continued to earn the interest of 8% per year for 35 years after you stopped making contributions, how much is the account worth? Solution

The 401K is the account you can deposit part of your salary before tax, e.g. all the federal, state, and local tax will not be calculated until they deduction the 401K deposit from your salary. Now we can look can two periods. When you are in your first job, you have stable contributions annually (or monthly in real life) Once you left the job, the interest will continue to accrue, but there will be no new contribution to this account. So during the first five year, you are looking at int % per year pmt-s .nper=$ years; and PV=$