Question: Your company sponsors a 401 k plan into which you deposit
Your company sponsors a 401(k) plan into which you deposit 10 percent of your $ 120,000 annual income. Your company matches 75 percent of the first 10 percent of your earnings. You expect the fund to yield 12 percent next year. If you are currently in the 31 percent tax bracket, what is your annual investment in the 401(k) plan and your one-year return?
Answer to relevant QuestionsAn employee contributes $ 15,000 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $ 1,500. The employee can allocate the contributions among equities (earning 12 percent annually), bonds ...Which type of cash withdrawal presents very little liquidity risk? Which type of cash withdrawal is a source of significant liquidity risk for DIs?Consider two bonds a 10-year premium bond with a coupon rate higher than its required rate of return and a zero coupon bond that pays only a lump sum payment after 10 years with no interest over its life. Which do you think ...Why can insolvency risk be classified as a consequence or outcome of any or all of the other types of risks?Assume that a bank has assets located in Germany worth € 150 million earning an average of 8 percent. It also holds € 100 in liabilities and pays an average of 6 percent per year. The current spot rate is € 1.50 for $ ...
Post your question