Question

You have recently signed up for a new job and noticed this policy for retirement savings. Invest $200 and the employer does 70% matching for 35 years at an interest rate of 4.8%.
Find the total amount that the employer contributes each month.

What amount will you have after 35 years?

How much money have you deposited into the account yourself?

How much more money is in the account than what you have deposited?

Answer 1

Answer:

Amount per month contributed by employer $ = 200*0.70 = 140

Total amount employer contributes $ = 140*420 = 58800

Total amount employee contributes $ = 200*420 = 84000

Total amount after 35 years with interest calculated AT 4.8% (Employer + employee + interest) $ = 371024.67

Interest amount for 35 years accumulated $ = 228224.67

Amount deposited by employee $ = 84000

Excess amount in the account over the employee contribution

Including employer contribution $ = 287024.67

Excluding employer contribution $ = 228224.67

Step-by-step explanation:

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