Julie started her first job a year ago and called to ask about her 401k which already has a balance of $9,437.00 as of today. She is now 25 years old and is making 75k a year living in So California. She was auto enrolled into her 401k contributing 6% with a 4% match. Her employer also contributes a profit-sharing contribution of an additional 3% of salary into the retirement account. If she works till age 65, how much will she have in her 401k if her investments earn a 6% average rate of return? She has a surplus of income right now, so she is thinking of adding another 6% in addition to her current 6% contribution for a total contribution of 12% from her. The employer would still contribute the 4% match and the 3% profit sharing into her 401k. How much would she have at age 65 if she contributed at this higher amount? What would the difference be if she earned 7% instead of 6% in both previous scenarios? For this problem you should have 4 answers when you are done. Two with the 6% rate of return number and two with the 7% rate of return number.
Julie started her first job a year ago and called to ask about her 401k which already has a balance of $9,437.00 as of today. She is now 25 years old and is making 75k a year living in So California. She was auto enrolled into her 401k contributing 6% with a 4% match. Her employer also contributes a profit-sharing contribution of an additional 3% of salary into the retirement account. If she works till age 65, how much will she have in her 401k if her investments earn a 6% average
She has a surplus of income right now, so she is thinking of adding another 6% in addition to her current 6% contribution for a total contribution of 12% from her. The employer would still contribute the 4% match and the 3% profit sharing into her 401k. How much would she have at age 65 if she contributed at this higher amount?
What would the difference be if she earned 7% instead of 6% in both previous scenarios?
For this problem you should have 4 answers when you are done. Two with the 6% rate of return number and two with the 7% rate of return number.
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