Question: Can someone let me know if I'm doing this correctly? An employee contributes $16,400 to a 401(k) plan each year, and the company matches 10

 Can someone let me know if I'm doing this correctly? An

Can someone let me know if I'm doing this correctly?

An employee contributes $16,400 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,640. The employee can allocate the contributions among equities (earning 13 percent annually), bonds (earning 6 percent annually), and money market securities (earning 4 percent annually). The employee expects to work at the company 20 years. The employee can contribute annually along one of the three following patterns: Equities Bonds Money market securities Option 1 70% 30 Option 2 60% 35 Option 3 50% 40 10 100% 100% 100% Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 20 years. (Do not round intermediate calculations. Round your answers to the nearest whole number. (e.g., 32)) Option 1 Option 2 Option 3 $ $ $ 1,221,280 1,135,293 1,049,305 An employee contributes $16,400 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,640. The employee can allocate the contributions among equities (earning 13 percent annually), bonds (earning 6 percent annually), and money market securities (earning 4 percent annually). The employee expects to work at the company 20 years. The employee can contribute annually along one of the three following patterns: Equities Bonds Money market securities Option 1 70% 30 Option 2 60% 35 Option 3 50% 40 10 100% 100% 100% Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 20 years. (Do not round intermediate calculations. Round your answers to the nearest whole number. (e.g., 32)) Option 1 Option 2 Option 3 $ $ $ 1,221,280 1,135,293 1,049,305

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