Suppose that between the ages of 22 and 30​, you contribute ​$2000 per year to a​ 401(k) and your employer contributes ​$1000 per year on your behalf. The interest rate is 9.3​% compounded annually. What is the value of the​ 401(k) after 8 ​years? b. Suppose that after

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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a. Suppose that between the ages of 22 and
30​,
you contribute
​$2000
per year to a​ 401(k) and your employer contributes
​$1000
per year on your behalf. The interest rate is
9.3​%
compounded annually. What is the value of the​ 401(k) after
8
​years? b. Suppose that after
8
years of working for this​ firm, you move on to a new job.​ However, you keep your accumulated retirement funds in the​401(k). How much money will you have in the plan when you reach age​ 65? c. What is the difference between the amount of money you will have accumulated in the​ 401(k) and the amount you contributed to the​ plan?

 

 

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