Question: e contributes $16,200 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1.620. The can allocate the contributions
e contributes $16,200 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1.620. The can allocate the contributions among equities (earning 12 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 Option 2 Option 3 68% 35 78% 30 58% 40 10 lees 1ee% 1ee% culate 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 Calc intermediate calculations. Round your answers to the nearest whole number. (e.g., 32) K Prev 2 of 2 Next
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