Your job offers retirement savings plan to match your investments into an account, up to 5% of your gross monthly income. This account earns 5.7% compounded monthly. (401(k) plans have an average annual return of 5% to 8%) 1. Assume you are 22 years old now, and you wish to have $1,000,000 in your retirement at the age of 65. If you invest 5% o your gross monthly income into the 401(k) in the account above, and your employer matches that 5%, will you reach your goal? State the amount you will reach as your answer. Show your work here.
Your job offers retirement savings plan to match your investments into an account, up to 5% of your gross monthly income. This account earns 5.7% compounded monthly. (401(k) plans have an average annual return of 5% to 8%) 1. Assume you are 22 years old now, and you wish to have $1,000,000 in your retirement at the age of 65. If you invest 5% o your gross monthly income into the 401(k) in the account above, and your employer matches that 5%, will you reach your goal? State the amount you will reach as your answer. Show your work here.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Your job offers retirement savings plan to match your investments into an account, up to 5% of your
gross monthly income. This account earns 5.7% compounded monthly. (401(k) plans have an average annual
return of 5% to 8%)
gross monthly income. This account earns 5.7% compounded monthly. (401(k) plans have an average annual
return of 5% to 8%)
1. Assume you are 22 years old now, and you wish to have $1,000,000 in your retirement at the age
of 65. If you invest 5% o your gross monthly income into the 401(k) in the account above, and your
employer matches that 5%, will you reach your goal? State the amount you will reach as your
answer. Show your work here.
5% of Monthly Gross Income: $219.32
Total Amount invested each Month:
Amount saved:
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