Leo is 23 years old and works for a company that matches his 401(k contribution up to 4.6%. the interest rate for his 401(k is 5.32%. if he puts away 8% of his $65,000 salary every year, how much would he have saved in 10 years? round your answer to the nearest cent.

The solution would be like this for this specific problem:

Fv = pmt [(1+r)^(t)-1)÷r]

65,000 × 0.046=2,990

65,000 × 0.08=5,200

Fv = 5,200 × (((1+0.0532)^(10)−1) ÷ (0.0532)) = 66,390.27 

F v= 2,990 × (((1+0.0532)^(10)−1) ÷ (0.0532)) = 38,174.40

38,174.40 + 66,390.27 = 104,564.67

If he puts away 8% of his $65,000 salary every year, he would have saved $104,564.67 in 10 years.

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