Amy Parker, a 22-year-old and newly hired marine biologist, has opened a 401(k) retirement plan with her employer. Amy’s contribution, plus that of her employer, amounts to $2,150 per year starting at age 23. Amy expects this amount to increase by 4% each year until she retires at the age of 57 (there will be 35 EOY payments). What is the compounded future value of Amy’s 401(k) plan, in millions of $, if it earns an annual interest rate of 7% per year?
(a) The compounded future value of Amy’s 401(k) plan is $ million. (Round to three decimal places.) million. (Round to three decimal
(b) What will be the compounded future value if the plan earns an annual interest rate of 4% per year (instead of 7% per year)? $ places.)