Kim (50 Years of Age)is Considering Whether to Participate in Her

question 62

Essay

Kim (50 years of age)is considering whether to participate in her company's Roth 401(k)or traditional 401(k).This year,she plans to invest either $4,000 in a Roth 401(k)or $5,000 in a traditional 401(k).Kim plans on leaving the contribution in the retirement account for 20 years when she will receive a distribution of the entire balance in the account.Her employer does not have a matching program for employee contributions to retirement accounts.Assume Kim can earn a 6 percent before tax return in either account and that she anticipates that in 20 years her tax rate will be 30%.(Round future value factors to 5 decimal places and the future value and final answers to the nearest whole number)
1)What would be Kim's after-tax accumulation in 20 years if she contributes $4,000 to a Roth 401(k)account?
2)What would be her after-tax accumulation in 20 years if she contributes $5,000 to a traditional 401(k)account?

Apply regression analysis to real-world data sets and draw conclusions.

Understand the role of moisture in affecting the denseness of cement products.

Learn how to control and measure variables in an experimental setting.

Acquire the skill to use SPSS for data analysis in construction material studies.

---

Definitions:

Attentive

Paying close attention; alert or closely observant.

Present

pertains to the current moment or period in time, often contrasted with the past or future.

Soundness

The quality of being based on valid reason or good judgment; in finance, it refers to the stability and reliability of an institution or investment.

Social Networks

Platforms and technologies that enable individuals to connect, interact, share, and engage with each other through digital communication.