Christina made a one-time contribution of $18,500 to her 401(k)account, and she received a matching contribution from her employer in the amount of $5,300. Christina expects to earn a 7-percent before-tax rate of return on her account balance. Assuming Christina withdraws the entire balance in 25 years when she retires, what is Christina's after-tax accumulation from the $18,500 contribution to her 401(k)account? Assume her marginal tax rate at retirement is 35 percent. (Round future value factors to five decimal places and the future value and final answers to the nearest whole number.)

Question

Quizplus · Accepted Answer

The Answer of Christina made a one-time contribution of $18,500 to her 401(k)account, and she received a matching contribution from her employer in the amount of $5,300. Christina expects to earn a 7-percent before-tax rate of return on her account balance. Assuming Christina withdraws the entire balance in 25 years when she retires, what is Christina's after-tax accumulation from the $18,500 contribution to her 401(k)account? Assume her marginal tax rate at retirement is 35 percent. (Round future value factors to five decimal places and the future value and final answers to the nearest whole number.)

Christina Made a One-Time Contribution of $18,500 to Her 401(k)account