Your employer offers a 401(k) plan with a 45% match, and you set a goal of...

Your employer offers a 401(k) plan with a 45% match, and you set a goal of retiring in 25 years with an amount of money which has the same buying power that 1.4 million dollars has today. If the account earns an annual interest rate of 4.2% and the expected annual rate of inflation is 1.3%, how much should you contribute each month? Round your answer to the nearest dollar.

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 years ago

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