NewCorp offers its employees a 401(k) plan. The company matches employee contributions at 50% up to 10%. Randy just started working for NewCorp. His annual salary is $61,575, and he's paid monthly. Randy would like to have $250,000 in his 401(k) when he retires in 32 years. If his investments earn 7.5%, what percent of his salary should he contribute to his account?

NewCorp offers its employees a 401(k) plan. The company matches employee contributions at 50% up to 10%. Randy just started working for NewCorp. His annual salary is $61,575, and he's paid monthly. Randy would like to have $250,000 in his 401(k) when he retires in 32 years. If his investments earn 7.5%, what percent of his salary should he contribute to his account?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 6FPE

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Similar questions

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