Question

Last year Alvina contributed $85 per month towards her 401(k) account. if her employer matched 20% of her contributions, what was the total amount contributed to the 401(k) at the end of the year?

Answer 1

Alvina contributed $1020 that year. 20% of $1020 is $204. 1020+204=1224. The answer is $1224.

Answer 2

$1224.

Explanation:

We have been given that last year Alvina contributed $85 per month towards her 401(k) account.

Let us find Alvina's total contributions in last year by multiplying $85 by 12.

`\text{Alvina's total contributions}=\$85* 12`

`\text{Alvina's total contributions}=\$1020`

Now, we will find 20% of $1020 to figure out Alvina's employer's contributions last yer.

`\text{Alvina's employer's total contributions}=\$1020* (20)/(100)`

`\text{Alvina's employer's total contributions}=\$1020* 0.20`

`\text{Alvina's employer's total contributions}=\$204`

`\text{Total amount contributed}=\$1020+\$204`

`\text{Total amount contributed}=\$1224`

Therefore, an amount of $1224 was contributed to the 401(k) at the end of the year.