QUESTION 2 You estimate you can fund your 401(k) about $10,000 a year. Your 401(
ID: 2612713 • Letter: Q
Question
QUESTION 2
You estimate you can fund your 401(k) about $10,000 a year. Your 401(k) is estimated to earn about 6.57% a year. You plan to retire in 30 years and want $1,000,000 in your 401(k). About how much will be in your 401(k) and will you meet your goal?
About $300,000; No, you will not meet your goal.
About $1,079,458; Yes, you will exceed your goal.
About $874,588; No, you will not meet your goal.
Exactly $1,000,00; Yes, you exactly meet your goal.
a.About $300,000; No, you will not meet your goal.
b.About $1,079,458; Yes, you will exceed your goal.
c.About $874,588; No, you will not meet your goal.
d.Exactly $1,000,00; Yes, you exactly meet your goal.
Explanation / Answer
At the end of 30 years, there will be around $ 300,000 in the 401 (k) account, with interest separately worked out, and the goal of having $ 1,000,000 in the account will not be met.