1. You have 35 years until your retirement. You currently have $50,000 in your 401(k) account. You can contribute $10 thousand per year and your company will match 50 percent of your contribution. You expect an average return of 8% over the life of your 401(k) investments.
2. a. What is your future value of your 401(k) in 35 years?
3. b. What is your future value of your 401(k) if the average return drops to 5%?
4. c. Given the original information above (35 years until retirement, average return of 8%, and $50,000 currently in your 401(k)), how much would you have to start saving per year if you wanted your 401(k)s future value to be $1,500,000 by the time you want to retire?