What is your annual investment in the plan

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Question - Your Company sponsors a 401(k) plan into which you deposit 10 percent of your $120,000 annual income. Your company matches 75 percent of the first 10 percent of your earnings. You expect the fund to yield 13 percent next year. Assume you are currently in the 31 percent tax bracket.

Required -

a. What is your annual investment in the 401(k) plan?

b. What is your one-year return?

Reference no: EM133053522

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