If I start with $30,000 in my 401K and am able to save into my 401K: $5,000 next year (2025) $10,000 a year for the next 5 years (2026-2031) $15,000 a year for the 5 years after that (2031 - 2036) $20,000 a year for the following 5 years (2036 -2041) $ 10,000 for the last 4 years (2041 - 2045) If my 401K can earn me an average 6% interest, what would my yearly totals be and the total amount saved at the end of 20 years? Please show all of your work including any Excel formulas. Thanks for your help!!!

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
Question
If I start with $30,000 in my 401K and am able to
save into my 401K: $5,000 next year (2025) $10,000
a year for the next 5 years (2026-2031) $15,000 a
year for the 5 years after that (2031 - 2036) $20,000
a year for the following 5 years (2036 -2041) $
10,000 for the last 4 years (2041 - 2045) If my 401K
can earn me an average 6% interest, what would
my yearly totals be and the total amount saved at
the end of 20 years? Please show all of your work
including any Excel formulas. Thanks for your
help!!!
Transcribed Image Text:If I start with $30,000 in my 401K and am able to save into my 401K: $5,000 next year (2025) $10,000 a year for the next 5 years (2026-2031) $15,000 a year for the 5 years after that (2031 - 2036) $20,000 a year for the following 5 years (2036 -2041) $ 10,000 for the last 4 years (2041 - 2045) If my 401K can earn me an average 6% interest, what would my yearly totals be and the total amount saved at the end of 20 years? Please show all of your work including any Excel formulas. Thanks for your help!!!
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