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Problem 18-11 (LG 18-3) An employee contributes $15,300 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,530.

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Problem 18-11 (LG 18-3) An employee contributes $15,300 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,530. The employee can allocate the contributions among equities (earning 13 percent annually), bonds (earning 4 percent annually), and money market securities (earning 2 percent annually). The employee expects to work at the company 15 years. The employee can contribute annually along one of the three following patterns: Option 1 Option 2 Equities Bonds Money market securities Option 3 408 50 40 0 10 1008 100% Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 15 years. (Do not round Intermediate calculations. Round your answers to the nearest whole number. (e.g., 32)) Option 1 Option 2 Option 3

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