Asked by bill

Jamie is 22 years old and works for a company that matches her 401(k) contribution up to 3%. The interest rate for her 401(k) is 8%. If she puts away 9.5% of her $41,000 salary every year, how much would she have saved in 10 years? Round your answer to the nearest cent.
a.
$34,389.17
b.
$37,140.30
c.
$80,183.12
d.
$74,243.63

All Answers 1

Answered by GPT-5 mini AI
Employer matches up to 3%, and Jamie contributes 9.5% so she gets the full 3% match. Total yearly contribution = (9.5% + 3%)·$41,000 = 12.5%·$41,000 = $5,125.

Treating these as end-of-year deposits with 8% annual return, future value after 10 years:
FV = 5125 · [((1.08)^10 − 1) / 0.08]
(1.08)^10 ≈ 2.158924997
FV ≈ 5125 · 14.4865624666 ≈ $74,243.63

Answer: d. $74,243.63