Question

Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplet your account over 25 years? Click the table icon to view the future value annuity table and to view the present value annuity table click this table icon E.

Answer 1

Pgno Answer: Given that, Interest rate per annum = 11.1. Number of years = 30 1:55-25] Number of payments per annum = 1 Interest rate per period(y) - 11.. Number of periods (n) = 30x1. 30 payment per period (P) = 32900X151.+2:51) - 32900 X (0.05+0,025) - 32900 X0:075 = 246715 : Alc Balance After 55 yeays - Px [1177" = 2467.5*[C1+11:2)-1)=-11.7. - 24675% ($94.9922-11-0:11 = 2467.5x(21.89223 +0:11

PINO ® = 2467.5x 199.02 = 491082 Falc Balance After 55 years a: 4,91,082 వారు అందుకు వారు తల ముందుకు వారు అందంగా అలంలో మరియు కు నా కాలంగా ఎదు Interest rate per annum = 11.4 Number of years a 85 Number of compoundings per annum = lem Interest yate per period (Y)= 0.91.8 Number of periods (n) = 25x12 - 300 present value (PNA) = 491082 with chaw in Each Month (P) = pra--([1-{1+(11933=r =491082;((:-(1=(1+0.91.4)*800)]): 0.914. = 49109.2+(21-0.666029]}=0.6091 = 491082 +(0.933971)=0.0091 = 491082-102163417 =4784.78 I with draw in each month (P) = $ 4784.78)