Question
Your company sponsors a 4 0 1 ( k ) plan into which you deposit 1 1 percent of your $ 1 2 1 ,
Your company sponsors a k plan into which you deposit 1 percent of your $ annual income. Your company matches 7 percent of the first percent of your earnings. You expect the fund to yield 3 percent next year. Assume you are currently in the percent tax bracket.
a What is your annual investment in the k plan? Round your answer to the nearest whole number. eg
b What is your oneyear return? Round your answer to decimal places. eg
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
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