Question
You decide today to contribute 5% of your monthly salary for your retirement. Your employer pays 100% of your contribution up to 5% of your
You decide today to contribute 5% of your monthly salary for your retirement. Your employer pays 100% of your contribution up to 5% of your monthly salary. Both contributions will be invested in your employer's 401K account, which has an annual yield of 10%. Calculate the amount of money that will be in this account 30 years later. To simplify the exercise, the annual yield on the 401k account will remain fixed at 10% and your monthly salary will remain fixed at $ 2,800.
(show your calculations)
a. $ 512,608.18
b. $ 417,300.65
c. $ 341,591.88
d. $ 632,936.62
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