Step 1 Read the entire assignment. Step 2 Compute contribution amounts and Future Values for all accounts. Step 3 Compute the amount of each future account value that is taxable vs. the amount that is tax free BACKGROUND: Kelly and Nate need help computing three things: 1) The amount of money going into each of their 401(k) plans each month, 2) The projected future value of each of their 401(k) accounts, And, 3) The amount of each account's future value that is taxable vs. the amount that is tax free at their retirement date. ASSUMPTIONS: --The couple are both age 30. They want to know their projected future values (and taxable vs. tax free values) at the time they both turn 60 ( 30 years from now). --Kelly's account is a Roth 401(k). Her monthly salary is $5,000. Her account is empty; she is starting to make contributions this month. She will contribute 5% of her salary to the 401(k) plan. --Nate's account is also Roth 401(k). His monthly salary is $6,500. His account is also empty and he is beginning to make contributions this month. Nate will contribute 10% of his salary to the Roth 401(k) plan. His employer matches Nate's contributions dollar for dollar ( 100% match) on the first 5% he contributes. The employer matches Nate's contributions 50 cents on the dollar ( 50% match) on the NEXT 5% he contributes. The employer does not match contributions above 10%. Nate assumes these numbers will remain the same for the next 30 years. Nate expects to earn a rate of 12.0% on the investments in his Roth 401(k) plan. Step 1 Read the entire assignment. Step 2 Compute contribution amounts and Future Values for all accounts. Step 3 Compute the amount of each future account value that is taxable vs. the amount that is tax free BACKGROUND: Kelly and Nate need help computing three things: 1) The amount of money going into each of their 401(k) plans each month, 2) The projected future value of each of their 401(k) accounts, And, 3) The amount of each account's future value that is taxable vs. the amount that is tax free at their retirement date. ASSUMPTIONS: --The couple are both age 30. They want to know their projected future values (and taxable vs. tax free values) at the time they both turn 60 ( 30 years from now). --Kelly's account is a Roth 401(k). Her monthly salary is $5,000. Her account is empty; she is starting to make contributions this month. She will contribute 5% of her salary to the 401(k) plan. --Nate's account is also Roth 401(k). His monthly salary is $6,500. His account is also empty and he is beginning to make contributions this month. Nate will contribute 10% of his salary to the Roth 401(k) plan. His employer matches Nate's contributions dollar for dollar ( 100% match) on the first 5% he contributes. The employer matches Nate's contributions 50 cents on the dollar ( 50% match) on the NEXT 5% he contributes. The employer does not match contributions above 10%. Nate assumes these numbers will remain the same for the next 30 years. Nate expects to earn a rate of 12.0% on the investments in his Roth 401(k) plan