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
Add Answer to:
Tasha Jones, a 21-year-old and newly-hired civil engineer, does
not plan to keep close tabs on...
Amy Parker, a 22-year-old and newly hired marine biologist, is quick to admit that she does...
Amy Parker, a 22-year-old and newly hired marine biologist, is quick to admit that she does not plan to keep close tabs on how her 401(k) retirement plan will grow with time. This sort of thing does not really interest her. Amy's contribution, plus that of her employer, amounts to $2,300 per year starting at age 23. Amy expects this amount to increase by 4% each year until she retires at the age of 62 (there will be 40 EOY...
Amy Parker, a 22-year-old and newly hired marine biologists quick to admit that she does not...
Amy Parker, a 22-year-old and newly hired marine biologists quick to admit that she does not plan to keep close tabs on how her 401) r ement plan wil grow with time. This sort of thing does not really interest her Ay's contribution, plus that of her employer amounts to $2.250 per year starting at age 23. Amy expects this amount to increase by 4% each year urbisheries at the age of 57 there will be 35 EOY payments What...
A civil engineer planning for her retirement places 12% of her salary each year into a...
A civil engineer planning for her retirement places 12% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $180,000 and she expects her salary to increase by 4% each year, what will be the future worth of her retirement fund after 18 years provided it earns 11% per year? The future worth of her retirement fund will be $ .
Question 2 - Chapter 5 : Calculate the maximum contribution in 2018 for a 52-year-old employee...
Question 2 - Chapter 5 : Calculate the maximum contribution in 2018 for a 52-year-old employee earning $140,000 annually, working in a company with the following retirement plans: (1) a 401(k) with no employer match, and (2) a money-purchase plan with an employer contribution equal to 12% of salary: A. $16,800 B. $18,500 C. $24,500 D. $41,300 E. $55,000 Question 3 - Chapter 5 : Jack and Jill own a successful engineering company, which sponsors a 401(k) plan that...
Simone is now 50 years old and plan to retire at age 67 (in 17 years)....
Simone is now 50 years old and plan to retire at age 67 (in 17 years). She currently has a share portfolio worth $750,000, a superannuation fund worth $1,200,000, and a money market (similar to cash) account worth $500,000. Her share portfolio is expected to provide annual returns of 12% p.a. (compounded annually), her superannuation will earn her 9% p.a. (compounded annually), and the money market account earns 1.2% p.a. (compounded monthly). Assume all these returns are aftertax. Assume Simone’s...
Juwan and Timi Clarke are planning for retirement. Juwan has a number of retirement related questions...
Juwan and Timi Clarke are planning for retirement. Juwan has a number of retirement related questions he needs help answering. Use your retirement planning knowledge to address the following questions. a.Juwan would like to withdraw $365,000 from retirement savings when he retires. Assuming he can earn a 6.0 percent annualized rate of return on retirement assets, and that inflation will average 2.0 percent during retirement, how much will he need on his first day of retirement to fund twenty-four yearly...
1. Thomas is saving for his retirement by making deposits each year in his 401(k) plan....
1. Thomas is saving for his retirement by making deposits each year in his 401(k) plan. As his salary increases, he plans to deposit more money into the account. He started the deposit from the year of 2000, when he was 22 years old. Until 2013 the annual amounts that he deposited was given by the function D(t) - 4500 + 17, where t represents the year of the deposit measured from the start of the plan. a) Find D(15)....
You are 21-years-old and working in the marketing department of a medium-sized corporation. You are earning...
You are 21-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $40,000 paid every two weeks. Your employer provides a 401 (k) plan, and matches employee contributions by 50% up to a maximum 3% of your annual salary. You are in a 25% marginal tax rate. 1)Assume that you contribute 6% of your gross income to your 401 (k) account. How much will you contribute annually and per pay period to...
Jerry and Jenny are 25 years old and plan on retiring at age 67 and expect...
Jerry and Jenny are 25 years old and plan on retiring at age 67 and expect to live until age 100. Jenny currently earns $150,000 and they expect to need $150,000 per year in today’s dollars in retirement. Jerry is a stay at home dad. They also expect that Social Security will provide $40,000 of benefits in today’s dollars at age 67. Jenny has been saving $5,000 annually in her 401(k) plan. Their son, Jazz, was just born and is...
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are...
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account Statement An Advantage...
Amy Parker, a 22-year-old and newly hired marine biologists quick to admit that she does not plan to keep close tabs on how her 401) r ement plan wil grow with time. This sort of thing does not really interest her Ay's contribution, plus that of her employer amounts to $2.250 per year starting at age 23. Amy expects this amount to increase by 4% each year urbisheries at the age of 57 there will be 35 EOY payments What...
1. Thomas is saving for his retirement by making deposits each year in his 401(k) plan. As his salary increases, he plans to deposit more money into the account. He started the deposit from the year of 2000, when he was 22 years old. Until 2013 the annual amounts that he deposited was given by the function D(t) - 4500 + 17, where t represents the year of the deposit measured from the start of the plan. a) Find D(15)....
Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account Statement An Advantage...
Most questions answered within 3 hours.
-
Aluminum is cast in an insulating ceramic mold with no
superheat. The thickness of the casting...
asked 14 minutes ago -
Discuss the current status of Ulmus americana and the reasons for
it status. (answer in detail...
asked 25 minutes ago -
Q3. A car moves with a constant velocity of 25m/s east with
respect to a person...
asked 29 minutes ago -
If a bond currently sold at $865 with a yield to maturity of 8%
and a...
asked 46 minutes ago -
Q20
You are an international MIS consultant and have been asked to
brief a potential client...
asked 47 minutes ago -
Why companies use the variable costing method when the
absorption costing is the method approved by...
asked 50 minutes ago -
lease solve all the
questions, don't need to explanations
Q1 - All animal
species have general...
asked 5 hours ago -
Business Phasing
1.Discuss the logical progression for growing a business, which
starts from the initial idea...
asked 5 hours ago -
Modify
When executing on the command line having only
this program name, the program will accept...
asked 6 hours ago -
Kenny Electric Company's noncallable bonds were issued several
years ago and now have 20 years to...
asked 7 hours ago -
find H(e^Jtheta) at theta= 0, pi/10, pi/20, pi/2 for
the following:
a) H(e^Jtheta)= 1+e^Jtheta
b) H(e^Jtheta)=...
asked 7 hours ago -
Home Corporation will open a new store on January 1. Based on
experience from its other...
asked 7 hours ago