Tasha Jones, a 21-year-old and newly-hired civil engineer, does not plan to keep close tabs on...
Tasha Jones, a 21-year-old and newly-hired civil engineer, does not plan to keep close tabs on how her 401(k) retirement account's balance will change over time. Instead, she plans to make a reasonable annual contribution that grows each year. Tasha’s contribution, plus her employer matching her contribution, amounts to $4,000 per year which started when she was hired. Thanks to pay raises, Tasha expects the contribution to increase by 2.5% each year until she retires at the age of 67. What is the compounded future value of Susan’s 401(k) plan at retirement if it earns 7% per year? Express your answer in terms of dollars, rounded to the nearest dollar.
Homework Answers
Initial contribution=P=$4000
Rate of interest=i=7%
Growth rate=g=2.5%
Number of periodic contribution=n=46
Accumulated sum is given = FVg=?
We know that
Compounded future value og 401(K) plan at retirement is $1,720,780
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