Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with an amount of money which has the same buying power that 1.1 million dollars has today. If the account earns an annual interest rate of 1.2% and the expected annual rate of inflation is 1.5%, how much should YOU contribute each month to the 401(k)? Round your answer to the nearest dollar.

Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with an amount of money which has the same buying power that 1.1 million dollars has today. If the account earns an annual interest rate of 1.2% and the expected annual rate of inflation is 1.5%, how much should YOU contribute each month to the 401(k)? Round your answer to the nearest dollar.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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