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The annual income is 20,000 It is wise to set aside 7.5% of gross monthly income...

The annual income is 20,000
It is wise to set aside 7.5% of gross monthly income for 401 k investment. Assume the investment earns a 5% annual return and use Excel to determine the balance after 40 years for the unskilled worker and for your expected income. Then use Excel to determine how many years it would take for the unskilled worker and for your expected investment to reach $500,000.

Plz solve if sure..

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Answer #1
Balance after 40 years $181,199.66
Years to reach 500000 58.86

Workings

Assuming annual compounding, rate = 5%

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