In 2020, Nina contributes 6 percent of her $143,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2020 contributions to her 401(k) account? (Use Table 1, Table 2.) (Round your intermediate calculations and final answers to the nearest whole dollar amount.) * Assume Nina’s marginal tax rate at retirement is 30 percent.
In 2020, Nina contributes 6 percent of her $143,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2020 contributions to her 401(k) account? (Use Table 1, Table 2.) (Round your intermediate calculations and final answers to the nearest whole dollar amount.) * Assume Nina’s marginal tax rate at retirement is 30 percent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
In 2020, Nina contributes 6 percent of her $143,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax
* Assume Nina’s marginal tax rate at retirement is 30 percent.
Transcribed Image Text:Future Value of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
6.0%
7.0%
1
1.01000
1.02000
1.03000
1.03750
1.04000
1.04250
1.05000
1.06000
1.07000
2
1.02010
1.04040
1.06090
1.07641
1.08160
1.08681
1.10250
1.12360
1.14490
1.03030
1.06121
1.09273
1.11677
1.12486
1.13300
1.15763
1.19102
1.22504
1.04060
1.08243
1.12551
1.15865
1.16986
1.18115
1.21551
1.26248
1.31080
1.05101
1.10408
1.15927
1.20210
1.21665
1.23135
1.27628
1.33823
1.40255
1.06152
1.12616
1.19405
1.24718
1.26532
1.28368
1.34010
1.41852
1.50073
7
1.07214
1.14869
1.22987
1.29395
1.31593
1.33824
1.40710
1.50363
1.60578
1.08286
1.17166
1.26677
1.34247
1.36857
1.39511
1.47746
1.59385
1.71819
1.09369
1.19509
1.30477
1.39281
1.42331
1.45440
1.55133
1.68948
1.83846
10
1.10462
1.21899
1.34392
1.44504
1.48024
1.51621
1.62889
1.79085
1.96715
11
1.11567
1.24337
1.38423
1.49923
1.53945
1.58065
1.71034
1.89830
2.10485
12
1.12683
1.26824
1.42576
1.55545
1.60103
1.64783
1.79586
2.01220
2.25219
13
1.13809
1.29361
1.46853
1.61378
1.66507
1.71786
1.88565
2.13293
2.40985
14
1.14947
1.31948
1.51259
1.67430
1.73168
1.79087
1.97993
2.26090
2.57853
15
1.16097
1.34587
1.55797
1.73709
1.80094
1.86699
2.07893
2.39656
2.75903
16
1.17258
1.37279
1.60471
1.80223
1.87298
1.94633
2.18287
2.54035
2.95216
17
1.18430
1.40024
1.65285
1.86981
1.94790
2.02905
2.29202
2.69277
3.15882
18
1.19615
1.42825
1.70243
1.93993
2.02582
2.11529
2.40662
2.85434
3.37993
19
1.20811
1.45681
1.75351
2.01268
2.10685
2.20519
2.52695
3.02560
3.61653
20
1.22019
1.48595
1.80611
2.08815
2.19112
2.29891
2.65330
3.20714
3.86968
25
1.28243
1.64061
2.09378
2.51017
2.66584
2.83075
3.38635
4.29187
5.42743
30
1.34785
1.81136
2.42726
3.01747
3.24340
3.48564
4.32194
5.74349
7.61226
Periods
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
20.0%
25.0%
1
1.08000
1.09000
1.10000
1.11000
1.12000
1.13000
1.14000
1.15000
1.20000
1.25000
2
1.16640
1.18810
1.21000
1.23210
1.25440
1.27690
1.29960
1.32250
1.44000
1.56250
3
1.25971
1.29503
1.33100
1.36763
1.40493
1.44290
1.48154
1.52088
1.72800
1.95313
4
1.36049
1.41158
1.46410
1.51807
1.57352
1.63047
1.68896
1.74901
2.07360
2.44141
1.46933
1.53862
1.61051
1.68506
1.76234
1.84244
1.92541
2.01136
2.48832
3.05176
1.58687
1.67710
1.77156
1.87041
1.97382
2.08195
2.19497
2.31306
2.98598
3.81470
7
1.71382
1.82804
1.94872
2.07616
2.21068
2.35261
2.50227
2.66002
3.58318
4.76837
8
1.85093
1.99256
2.14359
2.30454
2.47596
2.65844
2.85259
3.05902
4.29982
5.96046
9.
1.99900
2.17189
2.35795
2.55804
2.77308
3.00404
3.25195
3.51788
5.15978
7.45058
10
2.15892
2.36736
2.59374
2.83942
3.10585
3.39457
3.70722
4.04556
6.19174
9.31323
11
2.33164
2.58043
2.85312
3.15176
3.47855
3.83586
4.22623
4.65239
7.43008
11.64153
12
2.51817
2.81266
3.13843
3.49845
3.89598
4.33452
4.81790
5.35025
8.91610
14.55192
13
2.71962
3.06580
3.45227
3.88328
4.36349
4.89801
5.49241
6.15279
10.69932
18.18989
14
2.93719
3.34173
3.79750
4.31044
4.88711
5.53475
6.26135
7.07571
12.83918
22.73737
15
3.17217
3.64248
4.17725
4.78459
5.47357
6.25427
7.13794
8.13706
15.40702
28.42171
16
3.42594
3.97031
4.59497
5.31089
6.13039
7.06733
8.13725
9.35762
18.48843
35.52714
17
3.70002
4.32763
5.05447
5.89509
6.86604
7.98608
9.27646
10.76126
22.18611
44.40892
18
3.99602
4.71712
5.55992
6.54355
7.68997
9.02427
10.57517
12.37545
26.62333
55.51115
19
4.31570
5.14166
6.11591
7.26334
8.61276
10.19742
12.05569
14.23177
31.94800
69.38894
20
4.66096
5.60441
6.72750
8.06231
9.64629
11.52309
13.74349
16.36654
38.33760
86.73617
25
6.84848
8.62308
10.83471
13.58546
17.00006
21.23054
26.46192
32.91895
95.39622
264.69780
30
10.06266
13.26768
17.44940
22.89230
29.95992
39.11590
50.95016
66.21177
237.37631
807.79357
Transcribed Image Text:Future Value of Annuity of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
6.0%
7.0%
1
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
2.01000
2.02000
2.03000
2.03750
2.04000
2.04250
2.05000
2.06000
2.07000
3.03010
3.06040
3.09090
3.11391
3.12160
3.12931
3.15250
3.18360
3.21490
4
4.06040
4.12161
4.18363
4.23068
4.24646
4.26230
4.31013
4.37462
4.43994
5.10101
5.20404
5.30914
5.38933
5.41632
5.44345
5.52563
5.63709
5.75074
6.15202
6.30812
6.46841
6.59143
6.63298
6.67480
6.80191
6.97532
7.15329
7
7.21354
7.43428
7.66246
7.83861
7.89829
7.95848
8.14201
8.39384
8.65402
8.28567
8.58297
8.89234
9.13255
9.21423
9.29671
9.54911
9.89747
10.25980
9.36853
9.75463
10.15911
10.47503
10.58280
10.69182
11.02656
11.49132
11.97799
10
10.46221
10.94972
11.46388
11.86784
12.00611
12.14622
12.57789
13.18079
13.81645
11
11.56683
12.16872
12.80780
13.31288
13.48635
13.66244
14.20679
14.97164
15.78360
12
12.68250
13.41209
14.19203
14.81212
15.02581
15.24309
15.91713
16.86994
17.88845
13
13.80933
14.68033
15.61779
16.36757
16.62684
16.89092
17.71298
18.88214
20.14064
14
14.94742
15.97394
17.08632
17.98135
18.29191
18.60879
19.59863
21.01507
22.55049
15
16.09690
17.29342
18.59891
19.65565
20.02359
20.39966
21.57856
23.27597
25.12902
16
17.25786
18.63929
20.15688
21.39274
21.82453
22.26665
23.65749
25.67253
27.88805
17
18.43044
20.01207
21.76159
23.19497
23.69751
24.21298
25.84037
28.21288
30.84022
18
19.61475
21.41231
23.41444
25.06478
25.64541
26.24203
28.13238
30.90565
33.99903
19
20.81090
22.84056
25.11687
27.00471
27.67123
28.35732
30.53900
33.75999
37.37896
20
22.01900
24.29737
26.87037
29.01739
29.77808
30.56250
33.06595
36.78559
40.99549
25
28.24320
32.03030
36.45926
40.27112
41.64591
43.07648
47.72710
54.86451
63.24904
30
34.78489
40.56808
47.57542
53.79924
56.08494
58.48553
66.43885
79.05819
94.46079
Periods
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
20.0%
25.0%
1
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
2.08000
2.09000
2.10000
2.11000
2.12000
2.13000
2.14000
2.15000
2.20000
2.25000
3
3.24640
3.27810
3.31000
3.34210
3.37440
3.40690
3.43960
3.47250
3.64000
3.81250
4
4.50611
4.57313
4.64100
4.70973
4.77933
4.84980
4.92114
4.99337
5.36800
5.76563
5.86660
5.98471
6.10510
6.22780
6.35285
6.48027
6.61010
6.74238
7.44160
8.20703
7.33593
7.52333
7.71561
7.91286
8.11519
8.32271
8.53552
8.75374
9.92992
11.25879
8.92280
9.20043
9.48717
9.78327
10.08901
10.40466
10.73049
11.06680
12.91590
15.07349
8
10.63663
11.02847
11.43589
11.85943
12.29969
12.75726
13.23276
13.72682
16.49908
19.84186
9.
12.48756
13.02104
13.57948
14.16397
14.77566
15.41571
16.08535
16.78584
20.79890
25.80232
10
14.48656
15.19293
15.93742
16.72201
17.54874
18.41975
19.33730
20.30372
25.95868
33.25290
11
16.64549
17.56029
18.53117
19.56143
20.65458
21.81432
23.04452
24.34928
32.15042
42.56613
12
18.97713
20.14072
21.38428
22.71319
24.13313
25.65018
27.27075
29.00167
39.58050
54.20766
13
21.49530
22.95338
24.52271
26.21164
28.02911
29.98470
32.08865
34.35192
48.49660
68.75958
14
24.21492
26.01919
27.97498
30.09492
32.39260
34.88271
37.58107
40.50471
59.19592
86.94947
15
27.15211
29.36092
31.77248
34.40536
37.27971
40.41746
43.84241
47.58041
72.03511
109.68684
16
30.32428
33.00340
35.94973
39.18995
42.75328
46.67173
50.98035
55.71747
87.44213
138.10855
17
33.75023
36.97370
40.54470
44.50084
48.88367
53.73906
59.11760
65.07509
105.93056
173.63568
18
37.45024
41.30134
45.59917
50.39594
55.74971
61.72514
68.39407
75.83636
128.11667
218.04460
19
41.44626
46.01846
51.15909
56.93949
63.43968
70.74941
78.96923
88.21181
154.74000
273.55576
20
45.76196
51.16012
57.27500
64.20283
72.05244
80.94683
91.02493
102.44358
186.68800
342.94470
25
73.10594
84.70090
98.34706
114.41331
133.33387
155.61956
181.87083
212.79302
471.98108
1054.79118
30
113.28321
136.30754
164.49402
199.02088
241.33268
293.19922
356.78685
434.74515
1181.88157
3227.17427
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