Answer: Annual value of a 401(k) plan is $10350.
Step-by-step explanation:
Since we have given that
Amount of employee contributes = $10000
Rate of interest employer agrees to match = 3.5%
We need to find the annual value of a 401(k) plan :
As we know the formula :
[tex]Amount+Employer\ match\\\\=10000+3.5\%\times 10000\\\\=10000+0.035\times 10000\\\\=10000+350\\\\=\$10350[/tex]
Hence, Annual value of a 401(k) plan is $10350.
