Question

You are trying to determine how much money to save (invest) each year in your 401(k) Plan to fund your retirement in order to pay yourself 70% of your final salary each year (that increases with inflation).

Answer 1

Answer:

the money you will invest per year to fund 70% of your salary after retirement is given by,

$\frac{401000}{100}$ X 70%=280 700.

Explanation:

you will need to save 280 700 in order to pay yourself 70% of 401 000.

since percentage is by 100, you will divide the salary by 100 and multiply the result by the new percentage.