new job and you'll make $100,000/year and will be paid 2x month (equal payments) To save for retirement you'll contribute 10% of every paycheck to your 401(k) where you'll buy stock and bonds and stuff that have an annual return of 7.2%. A

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Assume you start a new job and you'll make $100,000/year and will be paid 2x month (equal payments) To save for retirement you'll contribute 10% of every paycheck to your 401(k) where you'll buy stock and bonds and stuff that have an annual return of 7.2%. After working for 48 years, what will this 401K retirement account be worth?

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