1. Lulu started saving $200/month in a 401(k) earning 6% interest compounded monthly when she was 45 years old. How much will be in her account when she retires at age 65

Lulu's account will be equal to $48,287.94

Explanation:

a) Data and Calculations:

Savings in 401(k) = $200 per month

Interest rate = 6% compounded monthly

Period of savings = 20 years

Future value is determined using online calculator:

Results

FV (Future Value)$48,287.94

PV (Present Value)$47,711.96

N (Number of Periods)240.000

I/Y (Interest Rate)0.005%

PMT (Periodic Payment)$200.00

Starting Investment$0.00

Total Principal$48,000.00

Total Interest$287.94

answerup to (3) three years;