An electrician is 27 years old and starting a 401k. The employee plans to invest $350 per month with an expected interest rate of 3.5%, compounded monthly. After 30 years of working, the employee wants to have $200,000 in the retirement account. What is the difference between the actual balance and the employee's goal? A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used. The actual balance is $29,340.64 higher than the goal. The actual balance is $29,340.64 lower than the goal. The actual balance is $22,394.46 higher than the goal. The actual balance is $22,394.46 lower than the goal.
An electrician is 27 years old and starting a 401k. The employee plans to invest $350 per month with an expected interest rate of 3.5%, compounded monthly. After 30 years of working, the employee wants to have $200,000 in the retirement account. What is the difference between the actual balance and the employee's goal? A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used. The actual balance is $29,340.64 higher than the goal. The actual balance is $29,340.64 lower than the goal. The actual balance is $22,394.46 higher than the goal. The actual balance is $22,394.46 lower than the goal.
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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An electrician is 27 years old and starting a 401k. The employee plans to invest $350 per month with an expected interest rate of 3.5%, compounded monthly. After 30 years of working, the employee wants to have $200,000 in the retirement account. What is the difference between the actual balance and the employee's goal?
A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used.
The actual balance is $29,340.64 higher than the goal.
The actual balance is $29,340.64 lower than the goal.
The actual balance is $22,394.46 higher than the goal.
The actual balance is $22,394.46 lower than the goal.
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