John and Anne have the following expenses and account balances: Johns annual 401(k) contribution $22,000 Johns annual
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John and Anne have the following expenses and account balances:
John’s annual 401(k) contribution | $22,000 |
John’s annual salary | $165,000 |
Current Liabilities | $36,000 |
Housing Costs (PITI) monthly | $3,450 |
Cash & Cash Equivalents | $60,000 |
Monthly non-discretionary cash flows | $7,500 |
Monthly debt payments other than housing | $1,000 |
* John’s employer matches $1 for $1 up to 5% of his salary in his 401(k) plan. |
Based on the information above, calculate the Savings Rate.
a). 16.74
b). 17.25
c). 18.94
d). 18.33rn
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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