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Rachel has an opportunity to save $230 per month at an APR of 4.15% in a 401K plan through work. She plans to retire in 15 years. The income taxes are at 31% for her. (1) How much interest will Rachel have earned on her investment by the time she retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) $

Rachel has an opportunity to save $230 per month at an APR of 4.15% in a 401K plan through work. She plans to retire in 15 years. The income taxes are at 31% for her. (1) How much interest will Rachel have earned on her investment by the time she retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) $

Essentials Of Investments
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
Section: Chapter Questions
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Rachel has an opportunity to save $230 per month at an APR of 4.15% in a 401K plan through work. She plans to retire in 15 years. The income taxes are at 31% for her. (1) How much interest will Rachel have earned on her investment by the time she retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) $ (2) What are Rachel's tax savings over the course of her investment? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) $ (3) If Rachel's company offers a 10% matching contribution, how much would the company contribute to Rachel's 401K by the time she retires? (Express your answer rounded correctly to the nearest cent!) $
Transcribed Image Text:Rachel has an opportunity to save $230 per month at an APR of 4.15% in a 401K plan through work. She plans to retire in 15 years. The income taxes are at 31% for her. (1) How much interest will Rachel have earned on her investment by the time she retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) $ (2) What are Rachel's tax savings over the course of her investment? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) $ (3) If Rachel's company offers a 10% matching contribution, how much would the company contribute to Rachel's 401K by the time she retires? (Express your answer rounded correctly to the nearest cent!) $
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