Interest Answers

Jamie is 22 years old and works for a company that matches her 401(k) contribution up to 3%. The interest rate for her 401(k) is 8%. If she puts away 9.5% of her $41,000 salary every year, how much would she have saved in 10 years? Round your answer to the nearest cent.a.$34,389.17b.$37,140.30c.$80,183.12d.$74,243.63

Which of the following retirement plans places a maximum amount that an individual can contribute to the fund in a given year at $5,000?a.401(k)b.Tax-Deferred Annuityc.Pensiond.IRA

Tina contributes 9.5% of her monthly salary towards her 401(k) and her employer matches her contribution up to 5.4% of her annual salary. If the interest rate of her 401(k) is 8.1% compounded monthly and her monthly salary is $2,461, determine the amount in her account after 25 years. Round to the nearest cent. a. $339,804.33 b. $354,452.86 c. $344,941.24 d. $347,269.59 Please select the best answer from the choices provided

What is the biggest difference in who controls the 401(k) and IRA retirement plans? a. IRA is intended for a stable retirement income, while a 401(k) is reserved for emergencies or luxuries. b. 401(k) is a good last minute investment for retirement, while IRAs require years of investing. c. IRAs allow one to save a lot more money towards retirement than a 401(k). d. A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual. Please select the best answer from the choices provided

Andy would like to withdraw an annual salary of $45,000 from an account paying 3.1% compounded annually for 25 years once she retires. Given this information, determine the amount needed in her account in order for her to reach her goal. Round to the nearest cent.a.$9,386,168.48b.$14,516.13c.$798,954.46d.$774,931.58

RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of $32,523 for 30 years. If RuthAnn contributes 11% of her annual income to a 401(k) paying 7.1% compounded annually, will she reach her goal for retirement given that her annual income is $36,278.13? If she does not make her goal then state by what amount she will need to supplement her income. Round all answers to the nearest cent.a.RuthAnn will meet her annual goal of exactly $32,523 for retirement.b.RuthAnn will meet her annual goal of $32,523 for retirement with an excess of $20,791.60.c.RuthAnn will not make her annual goal of $32,523 and will need $1,039.85 to supplement her yearly income when she retires.d.RuthAnn will not make her annual goal of $32,523 and will need $10,395.80 to supplement her yearly income when she retires.

Why would a Roth 401(k) investment plan allow you to invest the most amount of money?a.The federal government subsidizes a portion of a Roth 401(k) to help people in lower tax brackets save for retirement. b.Roth 401(k) plans are reserved for administrators and executives, who have a higher income which would allow them to invest more.c.A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. d.The contribution limit of a Roth 401(k) plan is more than double the limit of the traditional 401(k).

Trent is 25 years old and works for a company that matches his 401(k) contribution up to 5%. The interest rate for his 401(k) is 7.3%. If he puts away 10% of his $32,000 salary every year, what would the total of his 401(k) be in 10 years? Round your answer to the nearest cent. a. $67,266.16 b. $72,176.59 c. $33,250.60 d. $35,677.89 Please select the best answer from the choices provided

Ron is 30 years old and is retiring at the age of 65. When he retires, he will need a monthly income of $1,270 for 10 years. If Ron contributes 5% of his monthly income to a 401(k) paying 2.75% compounded monthly, will he reach his goal for retirement given that his monthly income is $1,571.12? If he does not make his goal then state by what amount he will need to supplement his income. Round all answers to the nearest cent.a.Ron will meet his monthly goal of exactly $1,270 for retirement.b.Ron will meet his monthly goal of $1,270 for retirement with an excess of $7.42.c.Ron will not make his monthly goal of $1,270 and will need $74.16 to supplement his monthly income when he retires.d.Ron will not make his monthly goal of $1,270 and will need $741.68 to supplement his monthly income when he retires.

Ron is 25 years old and is retiring at the age of 65. When he retires, he will need a monthly income of $4,123 for 20 years. If Ron contributes 10% of his monthly income to a 401(k) paying 5.5% compounded monthly, will he reach his goal for retirement given that his monthly income is 3,142.23? If he does not make his goal then state by what amount he will need to supplement his income. Round all answers to the nearest cent.a.Ron will meet his monthly goal of exactly $4,123 for retirement.b.Ron will meet his monthly goal of $4,123 for retirement with an excess of $125.34.c.Ron will not make his monthly goal of $4,123 and will need $359.74 to supplement his monthly income when he retires.d.Ron will not make his monthly goal of $4,123 and will need $450.61 to supplement his monthly income when he retires.