1. Business
  2. Finance
  3. assuming you have had 55000 balance in your 401k account...

Question: assuming you have had 55000 balance in your 401k account...

Question details

Assuming you have had $55,000 balance in your 401k account and your annual salary is $50,000, suppose from now on your employer will match your deposit in your 401k plan but the amount of match money will be capped by 6% of your salary. If you decide to input 8% of your salary in your 401k plan each month and expect to make 10% return, compounded monthly, at time when you retire, how much money will you have in your 401k account? If you need $1.5 million dollars for your retirement life, based on the above investment in your 401k plan, at what age can you retire to enjoy life?

Requirements: Show calculations and formulas via MICROSOFT EXCEL ONLY:

Here is what I have for my Excel Calculator

Rate = 0.83%

PMT = $583.33

PV = (55,000)

FV= 1,500,000

NPER = ??

Do let me know if I'm going wrong somewhere

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution