An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low cost treasury bond fund. The engineer will put 3% of her salary of $70,000 into the account, and her employer will match half this amount. Her salary is expected to increase 2.8% per year. (a) What is the value of the account after 10 years? (b) If she expects to work for 30 years, how much will be in the account?
An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low cost treasury bond fund. The engineer will put 3% of her salary of $70,000 into the account, and her employer will match half this amount. Her salary is expected to increase 2.8% per year. (a) What is the value of the account after 10 years? (b) If she expects to work for 30 years, how much will be in the account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low cost treasury bond fund. The engineer will put 3% of her salary of $70,000 into the account, and her employer will match half this amount. Her salary is expected to increase 2.8% per year. (a) What is the value of the account after 10 years? (b) If she expects to work for 30 years, how much will be in the account?
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