K
a. Suppose that between the ages of 22 and 32, you contribute [tex]$5000 per year to a 401(k) and your employer contributes $[/tex]2500 per year on your behalf. The interest rate is 7.9% compounded annually. What is the value of
the 401(k) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job. However,
you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you
reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and
the amount you contributed to the plan?
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a. The value of the 401(k) after 10 years is [tex]$ 108,135 (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The money accumulated in the plan when reaching age 65 is $[/tex]
(Do not round until the final answer. Then round to the nearest dollar as needed.)
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Inco
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