Ed wants to start saving for retirement by investing in his 401(k). Over the next 30 years, he wants to save up a total of $1,000,000. He will make contributions from his monthly paychecks (his annual salary is $144,000) and his employer will match 25% of his contributions. What percent of each monthly paycheck does he need to contribute to his 401(k) to meet his goal, if his account earn 8% interest? O 3.47% O 3.12% O 4.86% O 4.47%

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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Ed wants to start saving for retirement by investing in his 401(k). Over the next 30
years, he wants to save up a total of $1,000,000. He will make contributions from his
monthly paychecks (his annual salary is $144,000) and his employer will match 25% of
his contributions. What percent of each monthly paycheck does he need to contribute
to his 401(k) to meet his goal, if his account earn 8% interest?
O 3.47%
O 3.12%
4.86%
O 4.47%
Transcribed Image Text:Ed wants to start saving for retirement by investing in his 401(k). Over the next 30 years, he wants to save up a total of $1,000,000. He will make contributions from his monthly paychecks (his annual salary is $144,000) and his employer will match 25% of his contributions. What percent of each monthly paycheck does he need to contribute to his 401(k) to meet his goal, if his account earn 8% interest? O 3.47% O 3.12% 4.86% O 4.47%
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