Dream job: makes $ 72,000 per year.
a) what is 10% of your monthly income?
b) Assume your pay remains the same, use the answer from answe A as a payment for a 401K that earns an average of 4.5%. How much would you have in your 401K at the end of 40 years?
c) If you never touch the principal or your 401L. How much interest per month would this amount make gicen that the 401K males 4.5% per year? (hint: find the monthly interest for the amount found in answer B)
d) How much would you get paid per month from the annuity, if they pay out your annuity over 30 years? Given that the average interest rate earned by the 401K is 4.5% (use the loan formula).