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sam is planning to save 15000 a year in her 401 k for the next 20...

sam is planning to save 15000 a year in her 401 k for the next 20 years the she plans to retire over this time he expects to make a 10% annual geometric rate of return investing in us stock what is the present value of his 401 k contributions over the next 20 years?

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Answer #1

Formula

71-(1+i) Present value = Annual cash flow xPresent value = 15,000 x 1-(1 + 0.10) -20 0.10

Present value = 15,000 x 11 -0.1486436 0.10Present value = 15, 000 X 8.51356

Present value = 127, 703.46

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