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Dad has $25,000 in his 401k account and contributes 5% of his salary ever year. His...

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Finance

Dad has $25,000 in his 401k account and contributes 5% of hissalary ever year. His employer will match up to 10% dollar fordollar. He currently has 100% of his 401k invested in the fixedrate fund earning 2%. How much money will dad have after 30 yearswhen he is going to retire? Dad, 35, is an electrical engineer andearns $60,000 per year working for a local aerospace company. Hehas been getting a 3% raise every year.

Answer & Explanation Solved by verified expert
3.7 Ratings (465 Votes)
Assume that starting salary is 60000 Then at the end of year 1 salary will be 600001annual increase 6000013 61800 Out of the annual salary 5 is put in the 401k So amount deposited 561800    See Answer
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