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Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 5.4% and the expected annual rate of inflation is 1.2%, how much should you contribute each month? Round your answer to the nearest dollar.

Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 5.4% and the expected annual rate of inflation is 1.2%, how much should you contribute each month? Round your answer to the nearest dollar.

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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Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 5.4% and the expected annual rate of inflation is 1.2 %, how much should you contribute each month? Round your answer to the nearest dollar.
Transcribed Image Text:Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 5.4% and the expected annual rate of inflation is 1.2 %, how much should you contribute each month? Round your answer to the nearest dollar.
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