Determine accumulated value of contribution


What is the accumulated value of a $1,000 contribution to a qualified defined contribution plan under each of the circumstances described in the table below?

Tax Rate(%) Before-tax rate of return (%) Investment period
10 8 5 years
30 8 5 years
30 4 5 years
30 4 10 years

Suppose instead that the $1,000 is paid to an employee who then invests the funds in a nonqualified account. What is the accumulated value under EACH of the circumstances in the table?

 

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Finance Basics: Determine accumulated value of contribution
Reference No:- TGS026804

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