Business Finance: Critical Thinking Assignment
Please refer to the attached pdf file and answer the questions ONE BY ONE.
Financial calculation skills are believed as a requirement in order to complete this assignment.
Please list the questions and answers one by one in bullet points.
20171013053900business_finance_critical_thinking_assignment
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Business Finance Critical Thinking Assignment
Evaluation skill
- Contribution by self = $1000
Employer matching contribution = dollar to dollar = 1000
Total contribution = $2000
After a year, the return for this $2000 is; 2000 x (1.06) = 2120
Return from her own contribution is therefore = 112% per annum
The participation in employer’s 401(K) plan is therefore justifiable
(1,050 words)