A
3
5
year old employee who has just been hired will contribute part of their paycheck monthly to a
4
0
1
(
k
)
.
The employee's starting salary is $
7
5
0
0
0
a year. An annual raise of
4
.
6
4
%
is given to every employee each year. The employee plans to work for the company until they retire at age
6
2
and start withdrawing from their
4
0
1
(
k
)
3
0
%
of their ending salary each year they are retired. The employee expects to be retired for
3
5
years. They will withdraw the money in monthly installments. The
4
0
1
(
k
)
earns
7
.
1
7
%
per year compounded monthly. c
)
Using your answer to part b
)
,
how much does the employee needs to save in their
4
0
1
(
k
)
before they retire at age
6
2
?
Round to two decimals. d
)
Using your answer to part c
)
,
how much does the employee's monthly
4
0
1
(
k
)
contributions need to be
?
Round to two decimals. e
)
Using your answers to part c
)
and d
)
,
how many years would it take the employee to save the money they need to retire if they doubled their monthly contributions? Round to two decimals.