Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into this account, earning 5.3% annual return, compounded monthly. If they do this for 34 years, what is the value of the investment account in today's real dollars? Assume the average rate of inflation is 2.7%. Answer = $ (Round to the nearest cent/penny.)
Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into this account, earning 5.3% annual return, compounded monthly. If they do this for 34 years, what is the value of the investment account in today's real dollars? Assume the average rate of inflation is 2.7%. Answer = $ (Round to the nearest cent/penny.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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![Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into this
account, earning 5.3% annual return, compounded monthly. If they do this for 34 years, what is the value
of the investment account in today's real dollars? Assume the average rate of inflation is 2.7%.
Answer = $
(Round to the nearest cent/penny.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F167c4a57-20fc-4ce6-9a90-f7ea4d81de63%2F79505eec-7951-4f0a-b288-ec86b5ff1e52%2Fp8ja7sj_processed.png&w=3840&q=75)
Transcribed Image Text:Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into this
account, earning 5.3% annual return, compounded monthly. If they do this for 34 years, what is the value
of the investment account in today's real dollars? Assume the average rate of inflation is 2.7%.
Answer = $
(Round to the nearest cent/penny.)
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