Richard has enrolled in a 401(k) savings plan. He intends to deposit $250 each month; his employer does not contribute to his account. How much will be in his account in 20 years?
Mathematics · College · Mon Jan 18 2021
Answered on
Given:
Richard has enrolled in a 401(k) savings plan. He intends to deposit $250 each month; his employer does not contribute to his account.
Determine how much will be deposited in the account.
Explanation:
The given condition is somewhat tricky since Richard intended to deposit $250 but it is said that his employer does not contribute to his account. Basically, the employer is the one responsible in deducting the salary of Richard by $250 and deposits it on the 401(k) savings plan, but as stated that the employer did not deposit, this means that the money in the account after 20 years is 0.
Final answer:
= $0