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Your company sponsors a 401(k) plan into which you deposit 8 percent of your $95,000 annual income. Your company matches 50 percent of the first
Your company sponsors a 401(k) plan into which you deposit 8 percent of your $95,000 annual income. Your company matches 50 percent of the first 3 percent of your earnings. You expect the fund to yield 8 percent next year. Assume you are currently in the 31 percent tax bracket. a. What is the total annual investment in the 401(k) plan at year-end? (Round your answer to the nearest whole number. (e.g., 32)) b. What is your one-year return? (Round your answer to 2 decimal places. (e.g., 32.16)) Answer is complete but not entirely correct. a. $ Annual investment One-year return 9,025 85.87 b. %
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