Question

What is the annual value of a 401(k) plan in which the employer agrees to match 3.5% if the employee contributes $10,000?

Answer 1

Answer: Annual value of a 401(k) plan is $10350.

Explanation:

Since we have given that

Amount of employee contributes = $10000

Rate of interest employer agrees to match = 3.5%

We need to find the annual value of a 401(k) plan :

As we know the formula :

`Amount+Employer\ match\\\\=10000+3.5\%* 10000\\\\=10000+0.035* 10000\\\\=10000+350\\\\=\$10350`

Hence, Annual value of a 401(k) plan is $10350.