1. Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up to a maximum of 10% of your pay. Assuming you max-out your retirement savings and you work for 30 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? 3. In Exercise 1, if you are taxed at a rate of 28%, how much money will you have after taxes?

1. Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up to a maximum of 10% of your pay. Assuming you max-out your retirement savings and you work for 30 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? 3. In Exercise 1, if you are taxed at a rate of 28%, how much money will you have after taxes?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Round final answers to the nearest penny as needed. 1. Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up to a maximum of 10% of your pay. Assuming you max-out your retirement savings and you work for 30 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)?
1. You want to have an income of $50,000 per year in retirement, and you think you will be alive for 30 years in retirement. How much do you need to have invested the day you retire, in real dollars, assuming a 3% real rate of return?
None
You have just made your first $4,300 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. a. What will your account be worth when you retire in 28 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
please show all work and state answer clearly
I want a monthly income of $6,500 during my retirement. I will retire at 67 and "plan" to live until 97 (30 years after retirement). I am 42 right now. If I have $170,000 in retirement account right now, how much should I save each quarter until retirement to meet my income requirement during retirement. Assume: 6% annual rate of return until retirement, compounded quarterly. Assume: 0.25% monthly rate of return compounded monthly, after retirement. This problem has multiple steps.
Q40
Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account bears interest at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your educational expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest 1 2 3 4 5 6 End Balance
a. Suppose that between the ages of 22 and 32, you contribute $7000 per year to a 401(k) and your employer contributes $3500 per year on your behalf The interest rate is 9 4% compounded annually What is the value of the 401(k) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you keep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 4010) after 10 years is S (Do not round until the final answer. Then round to the nearest dollar as needed )
Manuben
Your employer automatically puts 5 percent of your salary into a 401 (k) retirement account each year. The account earns 7% interest. Suppose you just got the job, your starting salary is $60000, and you expect to receive a 2.5% raise each year. For simplicity, assume that interest earned and your raises are given as nominal rates and compound continuously. Find the value of your retirement account after 25 years Value = $
You want to have $1,000,000 in your retirement account by the time you turn 65. You are currently 25 years old and have not yet started saving for your retirement. If your 401K from work claims the average annual growth is 6%, how much do you need to save each month to have $1,000,000 when you retire? A. $1,442.01 each month B. $502.14 each month C. $2,083.33 each month D. $104.33 each month

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