Please review all of the course materials regarding Financial Markets: Savings and Investment Vehicles before you begin this assignment. You will also need to reference the Tax Cuts and Jobs Act of 2017 Links to an external site.. The questions below also rely on the following assumptions:
You are 30 years old and your employer sponsors a 401(k) plan with a 4% employer match.
You earn $100,000 of gross wage income. This income is expected to stay constant over the next three years.
At the start of every year you decide to invest 4% of your salary into your 401(k).
Your expected return on your investments is 5% per year.
You file your taxes as a single filer and you are in the 24% tax bracket.
The long term capital gains tax is 15%.
**Calculate the total amount of funds that you expect to be in your 401(k) at the end of three years. Explain your answer.
**At the end of the third year, you decide to withdraw $15,000 from your 401(k) to pay for some home improvements. Calculate how much tax, if any, you will owe on this withdrawal. Explain your answer.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?