1 2 A B 3 You just graduated from college and your new employer offers a...

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1 2 A B 3 You just graduated from college and your new employer offers a 401(k) where they match your 4 contribution, dollar for dollar. You want to know the accumulated balance in your 401(k), including 5 your employer's contribution, assuming you contribute either $950 per month or $1,150 per 6 month, and the fund earns 8.1% annually. 7 8 9 Annual rate of return 8.1% 10 Monthly contribution #1 $950 11 Monthly contribution #2 $1,150 12 Years to retirement 24 13 Payments per year 12 14 15 16 1. Assuming you and your employer each invest $950 17 per month, what will be the value of your 401(k) at the 18 end of 24 years? 19 20 2. Assuming you and your employer each invest $1,150 21 per month, what will be the value of your 401(k)at the 22 end of 24 years? 23 24 25 1 2 A B 3 You just graduated from college and your new employer offers a 401(k) where they match your 4 contribution, dollar for dollar. You want to know the accumulated balance in your 401(k), including 5 your employer's contribution, assuming you contribute either $950 per month or $1,150 per 6 month, and the fund earns 8.1% annually. 7 8 9 Annual rate of return 8.1% 10 Monthly contribution #1 $950 11 Monthly contribution #2 $1,150 12 Years to retirement 24 13 Payments per year 12 14 15 16 1. Assuming you and your employer each invest $950 17 per month, what will be the value of your 401(k) at the 18 end of 24 years? 19 20 2. Assuming you and your employer each invest $1,150 21 per month, what will be the value of your 401(k)at the 22 end of 24 years? 23 24 25

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To calculate the accumulated balance in your 401k at the end of 24 years considering your monthly co... View the full answer