Devin has an opportunity to save $285 per month at an APR of 4.8% in a 401K plan through work. He plans fo retire in 25 years. The income taxes are at 32% for him. (1) How much will Devin have deposited into the account by the time he retires? (Express your answer rounded correctly to the nearest cent!) %24 (2) How much interest will Devin have earned on his investment by the time he retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) 2$ (3) If Devin's company offers a 30% matching contribution, use Excel's FV function to determine how much his investment will be worth when he retires. (Express your answer rounded correctly to the nearest cent!)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 10P
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Devin has an opportunity to save $285 per month at an APR of 4.8% in a 401K plan through work. He plans to
retire in 25 years. The income taxes are at 32% for him.
(1) How much will Devin have deposited into the account by the time he retires?
(Express your answer rounded correctly to the nearest cent!)
(2) How much interest will Devin have earned on his investment by the time he retires? Use Excel's FV function to
help answer this question.
(Express your answer rounded correctly to the nearest cent!)
2$
(3) If Devin's company offers a 30% matching contribution, use Excel's FV function to determine how much his
investment will be worth when he retires.
(Express your answer rounded correctly to the nearest cent!)
Transcribed Image Text:Devin has an opportunity to save $285 per month at an APR of 4.8% in a 401K plan through work. He plans to retire in 25 years. The income taxes are at 32% for him. (1) How much will Devin have deposited into the account by the time he retires? (Express your answer rounded correctly to the nearest cent!) (2) How much interest will Devin have earned on his investment by the time he retires? Use Excel's FV function to help answer this question. (Express your answer rounded correctly to the nearest cent!) 2$ (3) If Devin's company offers a 30% matching contribution, use Excel's FV function to determine how much his investment will be worth when he retires. (Express your answer rounded correctly to the nearest cent!)
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