Heidi contributes 11% of her monthly salary towards her 401 (k) and her employer matches her contribution up to 6% of her salary. If the interest rate of her 401 (k) is 6.25% compounded monthly and her monthly salary is $3,250, determine the amount in her account after 15 years. Round to the nearest cent.

A. $164,146.52

B. $165,001.45

C. $112,585.20

D. $113,171.58

Question

Mathematics

Jacob Keith

9 August, 08:34

Heidi contributes 11% of her monthly salary towards her 401 (k) and her employer matches her contribution up to 6% of her salary. If the interest rate of her 401 (k) is 6.25% compounded monthly and her monthly salary is $3,250, determine the amount in her account after 15 years. Round to the nearest cent.

A. $164,146.52

B. $165,001.45

C. $112,585.20

D. $113,171.58

+3

Answers (1)

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Talan Mendoza · Answer 1

11% (Salary) + 6% (Salary) =.11 (3250) +.06 (3250) = 357.50+195 = $552.50

The monthly contribution of $552.50 invested at 6.25% interest rate compounded monthly for 15 years with a regular monthly deposit of $552.50 would equal $165,001.45.

B. $165,001.45