Question

Lauren will make annual contributions in the amount of $4,770, on average, to a 401(k) over the next 34 years. Her employer will match 60% of her contributions. She is currently being taxed at 33%, but anticipates being taxed at 15% upon retirement. If her account grows at an average rate of 5.5% annually, what is the value of Lauren’s 401(k) upon retirement?

$381,435.69

$395,228.47

$481,057.72

$610,297.11

Answer 1

Hold on a sec

Answer 2

ok! :)

Answer 3

4770(1.60) = $7,632.
FVoa = (7632((1.055^34) - 1) / 0.055)
= 7632(5.17424 / 0.055)
= 7632(94.07712)
=$717,006.60 (rounded)

Answer 4

Did you report that guy or did he just disappear from existence?

Answer 5

i think he deleted his comment!

Answer 6

Good choice

Answer 7

& which answer should i pick because that's not one of my options. :(

Answer 8

What are your options then?

Answer 9

$381,435.69

$395,228.47

$481,057.72

$610,297.11

Answer 10

i really do appreciate your help! :)

Answer 11

Oh yeah... i'm stupid

Answer 12

Np

Answer 13

ughhhh :( idk what to do!

Answer 14

I'm trying hold on love

Answer 15

okay :)

Answer 16

It's funny that this girl thinks she's gonna retire in 34 years

Answer 17

lol, i guess

Answer 18

Wait a second hold on

Answer 19

alrighty!

Answer 20

I'm just gonna guess on this one, thank you anyways!

Answer 21

Wait I think I may be onto something good

Answer 22

:/ lol okay.

Answer 23

Ok.... So it turns out I have on sodding idea what the answer is. Your best bet is probably to talk to your teacher because i think you are getting cheated. I checked on yahoo answers and everyone go the same answer, $717,006.60

Answer 24

aww, well thank you so much for trying!! :') you're awesome.