Question
Reece is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of $40,000, will match 75 percent of his contributions up to 10
Reece is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of
$40,000,
will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. XYZ Company will match 100 percent of his contribution up to 6 percent of salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a
$38,000
salary. If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for
35
years with a return of
7
percent, how much would each account be worth? How can he use this information when choosing an employer?Click on the table icon to view the FVIF table
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.
If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for
35
years with a return of
7
percent, the ABC account will be worth
$nothing.
(Round to the nearest cent.)If Reece assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for
35
years with a return of
7
percent, the XYZ account will be worth
$nothing.
(Round to the nearest cent.)
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