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murzikaleks [220]
3 years ago
7

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

And please explain why!!!!
Mathematics
1 answer:
fredd [130]3 years ago
4 0

Answer:

  $610,297.11

Step-by-step explanation:

The problem seems to make several assumptions:

  • contributions are made at the end of each year
  • contributions and employer matching funds are not taxed until retirement
  • the 15% tax rate applies to the account balance amount at retirement

Of these, the last is least likely to be true in the United States.

___

Based on the assumptions above, we compute the amount from the future value of the series of contributions, then subtract 15% from that result.

  FV = P·((1 +r)^n -1)/r . . . . where P is the amount of each payment, r is the annual interest rate, n is the number of payments.

The amount deposited each year is ...

  $4770 + 0.60·4770 = $7630

Then the future value after 34 deposits is ...

  FV = 7630·(1.055^34 -1)/0.055 ≈ 717,996.60

When this amount is reduced by the assumed 15% tax rate, it becomes ...

  $717,996.60 - 0.15·717,996.60 = $610,297.11

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When Jack started his job working for an industrial manufacturing company, he contributed $100
Anestetic [448]

Answer:

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Problem 5 When Jack started his job working for an industrial manufacturing company, he contributed $100 at the end of each month into a savings account that earned 1.2 % interest compounded monthly for 8 years. At the end of the 8th year, Jack was laid off. To help meet family expenses, Jack withdrew $285 from the savings account at the end of each month for 2 years. At the end of the second year of being unemployed, Jack found another job and started contributing $138 back into the savings account at the end of each month for the next six years. How much money would he have in the account at the end of the six years after returning to work)? You may use the TVM Solver. Show all the necessary work that you need perform to arrive at the answer. (10 points)

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Answer:

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Step-by-step explanation:

Download pdf
3 0
3 years ago
What would the shape of your arms be if you modeled a quadratic graph? An absolute value graph?
andre [41]

Answer:

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2) a "V" or each arm straight out and point diagonally upward.

A quadratic graph involves a single variable with the highest degree being 2, such as x^2, x^2 + 4x + 2, etc. The graphs all have a U type shape, it may be opening down or up, but it will always be a U type shape.

An absolute value graph involves an equation such as y = |x| + 2, y = |x|, or y = |x - 2|, these all have a v shape. You may not include a quadratic term with the absolute value graph, otherwise it changes the shape slightly (the "arms" are curved)

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