Assume that you are 35 years old and have just changed jobs. You have $152,000 in a retirement...
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Assume that you are 35 years old and have just changed jobs. You have $152,000 in a retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $7,400 each year into your new employer's plan. If the rollover money and the new contributions both earn a 6% annual return, how much should you expect to have when you retire in 30 years?
Retirement
Retirement means the process of leaving a job in an organization. The process occurs when an individual completes his required age in his total service. The sum of money that they receive at the time of retirement is the benefit received to them in rendering valuable services.
Answer and Explanation: 1
| Particulars | Amount |
| Investment (152,000+7,400) | 159,400 |
| Rate of return | 6% |
| Number of years | 30 |
| Future value {159,400*(1+6%)^30} | 915,512.49 |
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