A new employee puts 4% of his salary of $65,000 into a retirement account, and his employer matches this, also putting 3% into the account. The money is invested in a diversified stock fund. His salary increases 2.5% per year. (a) What is the value of the account after 10 years? (b) What is the value of the employer’s matching funds? (c) How much will be in the account after 40 years?
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A new employee puts 4% of his salary of $65,000 into a retirement account, and his employer matches this, also putting 3% into the account. The money is invested in a diversified stock fund. His salary increases 2.5% per year. (a) What is the value of the account after 10 years? (b) What is the value of the employer’s matching funds? (c) How much will be in the account after 40 years?
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- Suppose that between the ages of 22 and 32, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest rate is 7.67.6% compounded annually. (a) 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?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?Carla Lopez deposits $2,500 a year into her retirement account. If these funds have an average earnings of 5 percent over the 40 hears until her retirement, what will be the value of her retirement account?
- A young student 22 years old has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each year thereafter she plans to deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P1,000,000?A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. a. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 40? $ b. How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions? c. How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70? 2$An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is increased by $600 each year and he deposits 10% of his yearly salary into a fund that earns 7% interest, what is the future worth at retirement?
- .A self-employed person deposits $3,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions?a. Suppose that between the ages of 22 and 36, you contribute $9000 per year to a 401(k) and your employer contributes $4500 per year on your behalf. The interest rate is 8.5% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 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? Click the icon to view some finance formulas. a. The value of the 401(k) after 14 years is $ (Do not round until the final answer. Then round to the nearest dollar as needed.)A self-employed person deposits $4,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 7 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 50?$ How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions?$ How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70
- a. Suppose that between the ages of 22 and 30, you contribute $2000 per year to a 401(k) and your employer contributes $1000 per year on your behalf. The interest rate is 9.3% compounded annually. What is the value of the 401(k) after 8 years? b. Suppose that after 8 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the401(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?You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 8 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40 years until retirement at age 65. For the first 10 years, She contributes $3,000 per year. She increases the contribution rate to $5,000 per year in years11 through 20. This is followed by increases to $10,000 per year in years 21 through 30 and to $15,000 per year for the last 10 years. This money earns a 9 percent return. First compute the value of the retirement plan when she turns age 65. Then compute the annual payment she would receive over the next 40 years if the wealth was converted to an annuity payment at 8 percent. Assume that contributions are made at the end of each year. You will not earn interest until the following year.