Question

Tina contributes 9.5% of her monthly salary towards her 401(k) and her employer matches her contribution up to 5.4% of her annual salary. If the interest rate of her 401(k) is 8.1% compounded monthly and her monthly salary is $2,461, determine the amount in her account after 25 years. Round to the nearest cent.

a.
$339,804.33
b.
$354,452.86
c.
$344,941.24
d.
$347,269.59



Please select the best answer from the choices provided


A
B
C
D

Answer 1

In 25 years, Tina will have $354,452.86

Explanation:

Monthly Contribution - $366.69 (Tina & Employer)

Length of Time in Years - 25

Estimated Interest Rate - 8.1%

Compound Frequency - Monthly