You plan for your retirement. You currently have $9,000 in your 401k. If you plan to save $500 per month for the next 34 years, how much will you have in your 401k at the end when you retire? Assume your 401k portfolio earns 9% return with monthly compounding.
Added by Vanesa W.
Step 1
Since you plan to save for 34 years, and there are 12 months in a year, the total number of months you will be saving is 34 * 12 = 408 months. Show more…
Show all steps
Your feedback will help us improve your experience
Manasvee Singh and 93 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401k account. How much will you be able to withdraw each year for 10 years, starting one year after your last deposit, if you can earn a real return of 10% per year and the inflation rate averages 2.8% per year?
Manasvee S.
You expect to retire in 30 years. Ater you retire, you want to be able to withdraw $3,500 from your account each month for 20 years. If your account earns 4% interest compounded monthly, how much will you need to deposit each month until retirement to achieve your retirement goals?
Supreeta N.
5. Suppose your company’s defined contribution retirement plan allows you to invest up to €20,000 per year. You plan to invest €20,000 per year in a stock index fund for the next 30 years. Historically, this fund has earned 9 percent per year on average. Assuming that you actually earn 9 percent a year, how much money will you have available for retirement after making the last payment?
Jon S.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD