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You just got your dream job and are thinking about your future. You ask your employer to start a 4 0 1 K account and
You just got your dream job and are thinking about your future. You ask your employer to start a account and use direct deposit from your check to deposit funds into this account. You are not sure how much you will need to retire on but figure that you can spare $ each month.
A How much will you have in the account by the end of years if the account pays compounded monthly?
B How much interest will you have earned?
After you have been contributing to your retirement account for those years, you decide you are ready to retire and expect that you will need to have monthly withdraws for the next years.
C How much will you be able to withdraw each month from your account if it still pays compounded monthly?
D How much interest will you have earned during the withdrawing?
E How much interest did the bank pay you in total?
F Considering what the cost of living might be in the future, do you think that the monthly withdrawal amount will be enough to live off of Explain why.
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