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
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Question 3 is referring back to question 1. Below I
have provided the answer to check work.. please
help me solve
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?
3. $386,301.17
Transcribed Image Text:Question 3 is referring back to question 1. Below I have provided the answer to check work.. please help me solve 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? 3. $386,301.17
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