9. You Invest $7500/year into a 401K earning 6 %/year Interest. a) How much is your...

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9. You Invest $7500/year into a 401K earning 6 %/year Interest. a) How much is your 401K worth after 40 years? b) You are getting close to retiring and you want to collect $40,000/year for 30 years. If you 401 K is now earning 3% a year, then how much do you need in your 401K to fund the yearly payments of $40,000 a year. 9. You Invest $7500/year into a 401K earning 6 %/year Interest. a) How much is your 401K worth after 40 years? b) You are getting close to retiring and you want to collect $40,000/year for 30 years. If you 401 K is now earning 3% a year, then how much do you need in your 401K to fund the yearly payments of $40,000 a year.

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Solving your 401k questions using an annuity formula We can use the concept of an annuity to solve b... View the full answer