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 interestrate 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 jobHowever, 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 differencebetween 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 )

The future value function or concept can be used to determine the future value of a present sum or…

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 interes rate is 9 4% compounded annually What is the value of the 4010) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you koep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 657 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. 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 interes rate is 9 4% compounded annually What is the value of the 4010) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you koep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 657 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?

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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Your company’s pension plan earns 4.3 % interest per year, compounded quarterly. a) You would like to receive payments of $40,000 quarterly while retired. If you would like these payments paid out over 25 years, what amount of money will you need in your pension fund at the beginning of your retirement years? Give the answer correctly to 2 decimal places, and do not use the $ sign in the answer box. The money you will need at the beginning of your retirement years is Blank 1. Calculate the answer by read surrounding text. dollars. b) Use your answer from part a to help you to determine how much you should put into your pension fund quarterly during your working years to reach your retirement goals. Assume you are planning to work for 30 years. Give the answer correctly to 2 decimal places, and do not use the $ sign in the answer box. The amount you should deposit quarterly during your working years is Blank 2. Calculate the answer by read surrounding text.…
Suppose you plan to retire in 40 years. If you make annual contributions of $12,000 into your retirement account for the first 8 years, and no more contributions to the account for the remaining 32 years. If the retirement account earns a fixed 6% annual interest, how much will you have at your retirement? Question 10 options: $739,166 $766,466 $793,766 $811,766 $829,766 $851,966
You just graduated and started your new job. Your starting salary is $50,000/year. Your employer's 401(k) plan states that your employer will contribute 3% of your salary to your 401(k) regardless of whether you make any contributions or not. They will also match your contributions, $1-for $1, up to 4% of your salary. Please answer the following questions: Assume that this annual total contribution is made for 35 years and your 401(k) earns an average annual return of 8%. How much will you have in your account at the end of this time period? Assume Beginning of Period Contributions. Round your answer to the nearest dollar - do NOT enter any cents or your answer will be marked as "incorrect". Also, do not add $ or commas in answer.
Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96
None
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 10.85 percent and make no additional contributions. a. What will your account be worth when you retire in 43 years? Note: 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? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Account value if you start now b. Account value if you wait 10 years
Your employer offers a 401(k) plan with a 32% match, and you set a goal of retiring in 26 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 2% and the expected annual rate of inflation is 1.2%, how much should you contribute each month to the 401(k)? Round your answer to the nearest dollar.
please show all work and state answer clearly
Your employer contributes 50 a week to your retirement plan. Assume that you work for your employer for another sixteen years and that the applicable discount rate is 6.5 %,compounded weekly. Givn these assumptions, what is this employee benefit worth to you today? 24135.99 25852.63 24218.04 25920.55 21574.68
You have to decide whether or not to participate in the employer match program at your work. If you place 8% of your gross pay into a retirement account, your employer will match it. You plan to retire in 30 years. You expect to earn 6% return on your investment. How much will you have in the account if your average annual gross salary is $50,000? A. $316,232.80 B. $22,973.96 C. $45,947.92 D. $632,465.60 Using the same information as the previous question, assume that you want to increase your portion of the contribution to 10%. The employer will only match up to 8%. How much would you have in this situation? A. $692,523.80 B. $711,523.80 C. $316,232.80 D. $632,465.60
When you begin your new job, your employer says they will match any 401k deposits you make by 50% up to 5% of your overall salary annually. When you start your new job as a college grad, you will make $50400 per year and you decide to take full advantage of the matching by depositing 5% of your monthly salary every month. a) How much will YOU be depositing in the 401k each month from your salary? $ b) How much will YOUR EMPLOYER be depositingin the 401k each month? c) How much TOTAL will be deposited into your 401k each month? $ d) How much will you have in the account in 35 years if it pays 7.5% APR? $ e) How much total money will you put into the account after 35 years? $ f) How much total will the employer have put into the account after 35 years? $ g) How much total interest will you earn? $ h) If you choose NOT to take advantage of depositing money into the 401k because you feel you need that money to pay bills now, how much money will you be losing from your employer and interest…
You have just made your first $5686 contribution to your retirement account. Assume you earn a return of 11.5 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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