Jayde's gross annual income is $54,002. She is paid biweekly and has 7% deducted from her paychecks for her 403(b). Her employer matches his deduction, to 5%. How much is d…

Question

asked Jan 10, 2019 72.5k views

2 Answers

Lennyn · Answer 1 · 2019-01-13T02:35:44+0000

Answer:

$249.24.

Explanation:

We have been given that Jayde's gross annual income is $54,002. She is paid biweekly and has 7% deducted from her paychecks for her 403(b).

Let us find Jayde's biweekly income by dividing her annual income by 26 as paid biweekly means paid 26 times a year.

$\text{Jayde's biweekly salary}=(\$54002)/(26)$

$\text{Jayde's biweekly salary}=\$2077$

Let us find amount contributed by Jayde for her 403(b) plan by finding 7% of $2077.

$\text{Amount contributed by Jayde for her 403(b) plan}=(7)/(100)* \$2077$

$\text{Amount contributed by Jayde for her 403(b) plan}=0.07* \$2077$

$\text{Amount contributed by Jayde for her 403(b) plan}=\$145.39$

Now let us find 5% of $2077 as Jayde's employer matches 5% of total biweekly pay.

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=(5)/(100)* \$2077$

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=0.05* \$2077$

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=\$103.85$

Now let us add amount contributed by Jayde and her employer to find total amount deposited into Jayde's 403(b) plan each payday.

$\text{Total amount contributed into Jayde's 403(b) plan each payday}=\$103.85+\$145.39$

$\text{Total amount contributed into Jayde's 403(b) plan each payday}=\$249.24$

Therefore, an amount of $249.24 is contributed into Jayde's 403(b) each payday.