Your assignment should begin with a "Data" section, documenting all of the numerical assumptions provided in both sections of this assignment.

Your calculations will require the use of a spreadsheet and a financial calculator. Please provide your detailed calculations, step$-$by$-$step, including calculator functions, in order to receive maximum credit.

Section $1$: Problem Statement

John Smith graduated $5$ years ago. with a Business degree and an emphasis in Finance. John is currently employed as a Sr$.$ Financial Analyst in the Corporate Finance department of a multinational corporation. He has progressed well in his career, with the ultimate goal of becoming the company's CFO. John's current salary of $$78,000$ has increased at an average rate of $5\%$ per year, with routine merit raises, and he expects to continue doing $50.$

John's firm, ABC Corporation, has a defined contribution plan $(401k)$ plan in place. Employees are allowed to contribute up to $10\%$ of their gross annual salary $($up to a maximum of $$10,000$ per year$)$ and the firm will match $50\%$ of the employee's contribution. Unfortunately. John has not yet taken Professor Money Man's advice to "Save, Start Young, and Pay Yourself First." Instead, John has enjoyed his post$-$college, nice$-$salary life by leasing a new car, renting an apartment and going out to Player's every weekend. Now that he has wedding plans on the horizon, John has come to the realization $($with help from his fianc$$c$,$ Jane Doe$)$ that it's time to start saving $-$ while he's still young!

John expects that the lovebirds' two largest future expenses will be the cost of a wedding $($short$-$term$),$ then later the down payment on a house $($medium$-$term$).$ The couple plans to spend $$10,000$ of their own money on the wedding in twelve months. They also hope to purchase a $$400,000$ house in $5$ years. Jane's parents have promised to match their $10\%$ down payment, but only if they manage to save it within $5$ years. Talk about motivation to save! Both future spouses agree that John will automate his savings by setting up monthly contributions to his $401k,$ wedding and house accounts.

If John Smith had fully taken advantage of his employer's $401k$ plan and company match. what would be his current $401k$ balance based on his historical $($last five years$)$ salary and contributions? Assume that John made the maximum contribution every year, with a $6\%$ amual return compounded annually. Second part, what would be his current $401k$ balance. had he taken more risk and achieved an annual return of $10\%?$