Question

A technical writer makes $45,000 per year and has just begun contributing 8% of her salary to her 401(k) plan. If her employer matches 6% of her contributions, how much will have been contributed to the 401(k) plan after 2 years?

A. $7632
B. $3816
C. $3600
D. $7200

Answer 1

the answe is D $7632

Answer 2

A. $7632

Explanation:

We have been given that a technical writer makes $45,000 per year and has just begun contributing 8% of her salary to her 401(k) plan.

Let us find the amount contributed by writer to her 401(k) plan by calculating 8% of $45,000.

`\text{The amount contributed by the writer to her 401(k) plan per year}=(8)/(100)* \$45,000`

`\text{The amount contributed by the writer to her 401(k) plan per year}=0.08* \$45,000`

`\text{The amount contributed by the writer to her 401(k) plan per year}=\$3,600`

Since her employer matches 6% of her contributions, so we can find employer's contribution to her 401(k) plan by calculating 6% of $3600.

`\text{The amount contributed by the employer to writer's 401(k) plan per year}=(6)/(100)* \$3,600`

`\text{The amount contributed by the employer to writer's 401(k) plan per year}=0.06* \$3,600`

`\text{The amount contributed by the employer to writer's 401(k) plan per year}=\$216`

`\text{Total amount contributes to the writer's 401(k) plan per year}=\$3600+\$216`

`\text{Total amount contributes to the writer's 401(k) plan per year}=\$3816`

Let us find the amount contributed to the writer's 401(k) plan after 2 years by multiplying $3816 by 2.

`\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\$3816* 2`

`\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\$7632`

Therefore, the total amount contributed to writer's 401(k) plan after 2 years will be $7632 and option A is the correct choice.