This homework has two parts $-$ completing the financial model worksheet and studying $401(k)$ retirement savings plan. Each part will carry $100$ homework points. Consequently, you can get $200$ points maximum from this homework assignment. If you have any questions, post yours in the Q&A $3$ discussion forum. I will answer them as soon as I can.

Part I. $(100$ points$)$ At the end of the financial model scenario example, I showed a partially completed worksheet. Complete it for all $12$ months and submit it to BrightSpace for credit.

Part $2.(100$ points$)$ Research and study $401$ K retirement savings plan. Then, consider the following scenario.

John Smith's Scenario

John is a single professional living in Brooklyn and works at the XYZ company as a webpage designer. His annual salary is $$85,000$ a year. His company offers a $401$ K retirement savings benefit, matching up to $6\%$ of the participating employee's salary. John wants to participate in the program because it gives many benefits, including the additional $6\%$ money toward retirement savings. He wants to determine how much contribution to the $401$ K plan would maximize his tax benefits and the company's match. He needs at least $$2,300$ per month for his living expenses.

Suppose that you are his CFA. How much annual $401$ K contribution would you suggest to him? Present your solution on a one$-$page report explaining how you reached that conclusion. Note that this homework DOES NOT require any Excel solutions yet. You may use it; however, figuring out the contribution is unnecessary. We will build the Excel $401$ K application in the next lesson.