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(9 points)
Thomas has an opportunity to save $275 per month at an APR of 8.1% in a 401k plan through work. He plans to retire in 10 years. The income
taxes are at 33% for him.
(1) If Thomas's company offers a 25% matching contribution, how much would the company contribute to Thomas's 401K by the time he retires?
(Express your answer rounded correctly to the nearest cent!)
$
(2) Use Excel's FV function to determine how much his investment will be worth when he retires based solely on his contributions
(Express your answer rounded correctly to the nearest cent!)
$
(3) What are Thomas's tax savings over the course of his investment? Review your course materials for help with this calculation
(Express your answer rounded correctly to the nearest cent!)
$
If you haven't answered the question correctly in 3 attempts, you can get a hint.