If an individual employee age 25 earning 45000 per year has


If an individual employee, age 25, earning $45,000 per year has an opportunity to participate in an employer sponsored 401(k) tax sheltered retirement account with the employer matching the first $1,200 of annual contributions made by the employee, compute the following:

A. If the individual employee is the 25% marginal income tax bracket and invests $1,200 per year into the employer provided 401(k) tax sheltered retirement account, how much with the employee's monthly net pay after taxes be reduced as a result of the $1,200 investment into the 401(k)?$_________________

B. How much total per year will be invested into the employee's account, if the individual employee invests $1,200 per year and takes full advantage of the matching funds (include employee's and employer's contributions).$__________________

C. How much will the employee have in his or her 401(k) account in 20 years if a 9% average annual rate is earned on the account?$________________

D. How much will the employee have in the 401(k) account in 30 years if a 9% average annual rate is earned on the account?$__________________

E. How much will the employee have in the 401(k) account at age 65 if a 9% average annual rate is earned on the account?$___________________

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Financial Management: If an individual employee age 25 earning 45000 per year has
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