Lauren will make annual contributions in the amount of $4770 on average to a 401(k) over the next 34 years. Her employer will match 60% of her contributions. She is currently being taxed at 33% but anticipate being taxed at 15% upon retirement. If her account grows at an average rate of 5.5% annually what is the value of Lauren's 401(k) upon retirement? (show work)
See the equation of future value of annuity ordinary through Google Flao=4,770×(((1+0.055)^(34)−1) ÷(0.055))=448,747.87 Then 448,747.87−(448,747.87×0.15) =381,435.69. 15% upon retirement.
