Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your employer offers a 401k plan, and matches your contributions dollar for dollar up to $5k. Last year you contributed $5k to the 401k to
Your employer offers a 401k plan, and matches your contributions dollar for dollar up to $5k. Last year you contributed $5k to the 401k to maximize your employer match, and set it to invest in an equity index fund. Assume you made the investment at the beginning of the year. The index fund returned 8% over the course of the year. What rate of return did you generate on your contributions to 401k for the year? Enter answer in percents, to two decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started