You've just recently started a new job at Monsters Inc. A part of their benefits package is a 401k plan that you can start contributing to immediately (assume no employer match). You make $120,000 per year in your current position (assume your income will stay this level for the problem). You have committed to contributing 15% of your income into the 401k for the next 30 years while you work. You predict that the investments in the account will perform at an annual rate of 12%. What should the value of your account be after 30 years? a. Let's assume that you make your contributions at the beginning of every year, what is the value of the account now? b. (BONUS) Assuming the original question parameters. What would the account value be if Monsters Inc matched your contribution up to 10%?

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Calculating your 401k value Assumptions Annual income120000 Contribution rate15 Investment return12 ... View the full answer