Question
You are 30-years old, and you make $100,000 per year. You contribute 6 percent of your salary to your 401(k) and your employer contributes 4
You are 30-years old, and you make $100,000 per year. You contribute 6 percent of your salary to your 401(k) and your employer contributes 4 percent of your salary. You plan on investing 60 percent of your funds in equities on which you expect to earn an average rate of return of 10 percent, and the rest in bonds projected to earn 5 percent. Assume your salary does not grow.
What is the average rate of return on your plan?
If you contribute in to the plan for 20 years, what will be your total interest earned in dollars?
(round it to the nearest decimal) How much money (in $) will you accumulate in 20 years?
(round it to the nearest decimal) How much (in $) is your annual total contribution to the plan?
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