Lauren will make annual contributions in the amount of $4,500, on average, to a 401(k) over the next 36 years. Her employer will match 75% of her contributions. She is currently being taxed at 35%, but anticipates being taxed at 28% upon retirement. If her account grows at an average rate of 6.2% annually, what is the value of Lauren’s 401(k) upon retirement?

$403,396.71

$637,310.77

$705,944.24

$923,778.11

I need help in knowing what formula I am using for this

Question

Lauren will make annual contributions in the amount of $4,500, on average, to a 401(k) over the next 36 years. Her employer will match 75% of her contributions. She is currently being taxed at 35%, but anticipates being taxed at 28% upon retirement. If her account grows at an average rate of 6.2% annually, what is the value of Lauren’s 401(k) upon retirement?

$403,396.71

$637,310.77

$705,944.24

$923,778.11

I need help in knowing what formula I am using for this

anonymous · Answer

hey you taking that exam now?