Lauren will make annual contributions in the amount of $4,770, on average, to a 401(k) over the next 34 years. her employer will match 60% of her contributions. she is currently being taxed at 33%, but anticipates being taxed at 15% upon retirement. if her account grows at an average rate of 5.5% annually, what is the value of lauren's 401(k) upon retirement?

$381,435.69

$395,228.47

$481,057.72

$610,297.11

and explain

  $610,297.11

Step-by-step explanation:

The problem seems to make several assumptions:

Of these, the last is least likely to be true in the United States.

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Based on the assumptions above, we compute the amount from the future value of the series of contributions, then subtract 15% from that result.

  FV = P·((1 +r)^n -1)/r . . . . where P is the amount of each payment, r is the annual interest rate, n is the number of payments.

The amount deposited each year is ...

  $4770 + 0.60·4770 = $7630

Then the future value after 34 deposits is ...

  FV = 7630·(1.055^34 -1)/0.055 ≈ 717,996.60

When this amount is reduced by the assumed 15% tax rate, it becomes ...

  $717,996.60 - 0.15·717,996.60 = $610,297.11

step-by-step explanation:

i have done this all on a piece of paper but idk how to put it on here cuz it needs to be drawn