Question

A flight attendant makes $35,000 per year and has just begun contributing 9% of his salary to his 401(k) plan. If his employer matches 8% of his contributions, how much will have been contributed to the 401(k) plan after 3 years?

A. $3402
B. $9450
C. $10,206
D. $3150

Answer 1

35000/12 = 2916.67 Per Month

401(k) from Salary = ((2916.67 * .09) * 36 = 9450.01

Employer 8% matching
9450.01 * .08 = 756.00

Total:
9450.01 + 756.00 = 10206.01 or rounded to 10206 = C

Answer 2

Option C. $10,206

Explanation:

A flight attendant makes per year = $35,000

He started contributing to 401(k) plan = 9% of 35,000

=
`(9)/(100)` × 35,000

= 0.09 × 35,000 = $3,150

His employer's contribution = 8% of 3,150

= 0.08 × 3,150 = $252.00

Total contribution to the 401(k) plan in one year = 3,150 + 252 = $3,402

Total contributed in 3 years = 3,402 × 3 = $10,206

$10,206 will have been contributed to the 401(k) plan after 3 years.