You have landed your first full-time engineering job which you will start this month. Your company...

   

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You have landed your first full-time engineering job which you will start this month. Your company offers to "match" your retirement savings, up to 4%. This means if you put 2% of your salary from each paycheck into your company's 401k plan, that your company will match this 2% and contribute the same amount to your retirement fund. If you save 3%, your company will contribute 3%. If you save 4%, your company will save 4%. If you save 5%, your company will contribute 4%. Etc. Your starting salary is $85,000 and you decide to put 6% of your income into your 401k. Assume the following: -annual deposits will be made into the retirement fund at the end of each year - the retirement fund earns 7.5% interest - your salary will stay the same over the next 40 years - you plan to save the same amount for the next 10 years, then stop saving during years 11 through 40 - your friend was hired to work the same job and the same company but does not start saving until year 11; she will save 6% of her income during years 11 through 40 instead a) How much cash is taken out of your year 1 paychecks? [Select] b) How much cash is deposited into your account in year 1? [Select] c) How much money is in your account in year 10? [ Select] d) How much money is in your account in year 40? [Select] e) How much money is in your friend's account in year 40? [Select] f) Who had the better investing strategy, you or your friend? [Select] You have landed your first full-time engineering job which you will start this month. Your company offers to "match" your retirement savings, up to 4%. This means if you put 2% of your salary from each paycheck into your company's 401k plan, that your company will match this 2% and contribute the same amount to your retirement fund. If you save 3%, your company will contribute 3%. If you save 4%, your company will save 4%. If you save 5%, your company will contribute 4%. Etc. Your starting salary is $85,000 and you decide to put 6% of your income into your 401k. Assume the following: -annual deposits will be made into the retirement fund at the end of each year - the retirement fund earns 7.5% interest - your salary will stay the same over the next 40 years - you plan to save the same amount for the next 10 years, then stop saving during years 11 through 40 - your friend was hired to work the same job and the same company but does not start saving until year 11; she will save 6% of her income during years 11 through 40 instead a) How much cash is taken out of your year 1 paychecks? [Select] b) How much cash is deposited into your account in year 1? [Select] c) How much money is in your account in year 10? [ Select] d) How much money is in your account in year 40? [Select] e) How much money is in your friend's account in year 40? [Select] f) Who had the better investing strategy, you or your friend? [Select]

Answer rating: 100% (QA)

a Determine how much cash is taken out of your year 1 paychecks Starting salary 85000 Your contribution 6 of 85000 5100 Company match Based on the giv... View the full answer