A 50 year old employee contributes 20000 per year to her 401k,and her employer matches her contributions by 40%. The investmentcompany has provided her with two options:
| Option 1 | Option 2 |
| Equity | 60% | 40% |
| Bond | 30% | 40% |
| Money Market Fund | 10% | 20% |
The employee wants to retire at 65. The average rates of returnpresented are 5% on equity, 3% on bonds, and 1% on money marketfunds. Calculate the total amount of money at the time ofretirement under each option.
