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6.7 Exercise 29

Avg difficulty 2.5

DeJean begins depositing $300 per month from his paycheck each month in his employer-based 401(k) account. The employer matches this deposit as it falls below their matching threshold. DeJean expects the return to average 10% per year, compounded annually.

  1. How much will DeJean’s account be worth if he keeps making those payments for 30 years?
  2. What will his account be worth without the matching funds?

OpenStax Contemporary Mathematics, 6.7 Investments, exercise 29

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.