Lucy just started a new job and her employer offers a 457 plan. She is currently 30 and plans to retire at 65, her goal is to have $1,200,000 in her 457 plan when she retires. How much does she need to deposit each month if she earns an APR of 12%?

2. Freddie just finished trade school, he has a new job and his employer offers a 401k with a dollar-for-dollar match of up to 5% of his salary. He is planning to contribute the full 5% of his salary which amounts to $400 a month. How much will he have in his 401k after 25 years if he earns 10%?

Answer rating: 100% (QA)

SOLUTION To calculate the monthly deposit that Lucy needs to make to have 1200000 in her 457 plan at ... View the full answer