Determine the accumulated value of contribution

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Reference no: EM1346024

What is the accumulated value of a $1,000 contribution to a qualified defined contribution plan under each of the circumstances described in the table below?

Tax Rate(%) Before-tax rate of return (%) Investment period
10 8 5 years
30 8 5 years
30 4 5 years
30 4 10 years

Suppose instead that the $1,000 is paid to an employee who then invests the funds in a nonqualified account. What is the accumulated value under EACH of the circumstances in the table?

Reference no: EM1346024

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