Question

Jamie is 22 years old and works for a company that matches her 401(k) contribution up to 3%. The interest rate for her 401(k) is 8%. If she puts away 9.5% of her $41,000 salary every year, how much would she have saved in 10 years? Round your answer to the nearest cent.
I NEED HELP WITH THIS PLZ

a. $34,389.17

b. $37,140.30

c. $80,183.12

d.$74,243.63

Answer 1

Answer:

$74,243.63

Step-by-step explanation:

Jamie = 22 years old

Interest rate = 8%

A contribution up to 3% is made

If she puts 9.5% of her $41000, we have

9.5% * 41000

= 0.095*41000

= $3895

The employer contributes a maximum of 3 %. So we have

3% *41000

= 0.03 * 41000

= $1230

Total annual contribution of Jamie = 3895 + 1230

= $5125

The money saved after 10 years is given as

FV = [P(1+r)^n - 1] / r

n = 10

P =annual payment = $5125

r = rate of interest = 8%

= 0.08

FV = [5125(1 + 0.08)^10 - 1 ]/ 0.08

FV = [5125(1.08)^10 - 1 ]/ 0.08

= $74,243.63

He will save $74,243.63

Answer 2

The amount she would  have saved in 10 years is $74,243.63.

Amount saved

Total annual contribution of Jamie=( 0.095×41000)+(0.03 ×41000)

Total annual contribution of Jamie = 3895 + 1230

Total annual contribution of Jamie = $5125

Money saved after 10 years:

FV = [P(1+r)^n - 1] / r

Where:

n = 10

P =annual payment = $5125

r = rate of interest = 8%

Let plug in the formula

FV = [5125(1 + 0.08)^10 - 1 ]/ 0.08

FV = [5125(1.08)^10 - 1 ]/ 0.08

FV= $74,243.63

Inconclusion the amount she would  have saved in 10 years is $74,243.63.

Learn more about here:https://brainly.com/question/25787382