Starting the retirement account

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Reference no: EM131972531

1. Sandra is going to contribute $380 on the first of each month, starting one month from today, to her retirement account. Her employer will provide a 50 percent match. In other words, her employer will add $190 to the amount Sandra saves. If both Sandra and her employer continue to do this and she can earn an APR of 9.6 percent, how much will she have in her retirement account 30 years from today?

A. $1,215,382

B. $1,183,556

C. $888,222

D. $361,172

E. $961,737

2. Today is a big day in your life. You turned 22 and started a new job. You have decided to contribute $400 a month into your company-sponsored 401 K plan account, beginning one month from today. You will maintain the $400 monthly contribution for twenty years. Thereafter, you will increase your contribution to $600 per month until you retire at age 66. Your investments will earn 9 percent per year throughout your investment horizon. How much will you have in your retirement account the day you retire?

A. $2,906,063

B. $3,007,416

C. $4,126,578

D. $2,000,040

E. $2,591,708

Reference no: EM131972531

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