Question

A personal trainer makes $25,000 per year and has just begun contributing

6% of his salary to his 401(k) plan. If his employer matches 9% of his
contributions, how much will have been contributed to the 401(k) plan after 4
years?

Answer 1

$6,540

Explanation:

Just did test

Answer 2

$6,540

Explanation:

In 1 year, the trainer contributes 6% of 25,000;

0.06*25000= $1500

The employer matches 9% of his contributions; 9% of 1,500

0.09*1500= $135

Therefore, in 1 year, the 401(k) account will have 1500+135=$1635

This means that in order to find how much will have ben contributed after 4 years , you multiply $1635 by 4;

1635*4= $6,540