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What is the balance in your 401k account upon retirement given the following information?

Employee contribution = $250 per month

Savings period until retirement = 25 years

Annual Rate of Return = 5%

Employer matches 50% of employee contribution (no limit)

Compounded quarterly

A.

$214,772

B.

$223,316

C.

$147,804

D.

$221,706

5 points

QUESTION 7

An employee earns $78,000 per year for 2 years. Each year she makes a contribution to her 401K in the amount of 5.50% of annual salary. There is no company match. Her return on investment is 4% annually. Assume contributions are made on January 1st of each year and her tax rate is 32%. What is the total value of tax savings (including interest) from 401k contributions at the end of 2 years?

A.

$1,485

B.

$2,913

C.

$2,855

D.

$2,746

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Beverley Smith
Beverley SmithLv2
28 Sep 2019

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Question 2. 2. Natalie and Brian visited your office today. They are both in their early 30s and have two children with one on the way. During your meeting they provide you with the following financial information:
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• Other Debt Payments per Year - $50,000
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Which of the following is true? (Points : 0.12)

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• Total Debt – $200,000

Which of the following is true?

A.The housing ratio 1 (basic) is within the normal range.
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a. True
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