Reference no: EM133028073

Question -

Q1. James earns $33,000 per year, and he's paid monthly. His employer offers a 401(k) plan with 50% matching up to 8% of salary. What is the minimum amount of money that James needs to contribute to his 401(k) each month to get the maximum contribution from his employer?

Q2. Suppose James contributes the minimum amount of money to his 401(k) to get the maximum contribution from his employer. How much money will his employer contribute to his 401(k) each month?

Q3. Suppose James contributes the minimum amount of money to his 401(k) each month to get the maximum contribution from his employer. James is 27 years old, and he would like to retire when he's 67 years old. How much money will James accumulate by the time he retires? Assume his investments will earn an interest rate of 6%, which is a reasonable inflation-adjusted return for a diversified investment portfolio.

Q4. Brittany earns $51,000 per year, and she's paid monthly. Brittany's employer offers a 401(k) plan, and her employer will contribute 7% of her salary provided Brittany contributes at least 5%. What is the minimum amount of money that Brittany needs to contribute to her 401(k) each month to get the contribution from her employer?

Q5. Suppose Brittany contributes the minimum amount of money to her 401(k) to get the contribution from her employer. How much money will her employer contribute to her 401(k) each month?

Q6. Suppose Brittany contributes the minimum amount of money to her 401(k) each month to get the contribution from her employer. Brittany is 27 years old, and she would like to retire when she's 67 years old. How much money will Brittany accumulate by the time she retires? Assume her investments will earn an interest rate of 6%, which is a reasonable inflation-adjusted return for a diversified investment portfolio.