a. Suppose that between the ages of 22 and 36, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest rate is 8.3% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 401(k) after 14 years is $: (Do not round until the final answer. Then round to the nearest dollar as needed.)
a. Suppose that between the ages of 22 and 36, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest rate is 8.3% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 401(k) after 14 years is $: (Do not round until the final answer. Then round to the nearest dollar as needed.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 16PROB
Related questions
Question
Help with a,b,c. Round to the nearest dollar as needed.
Transcribed Image Text:a. Suppose that between the ages of 22 and 36, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest
rate is 8.3% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job.
However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference
between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?
a. The value of the 401(k) after 14 years is $.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT