2 Answers

Nicholaswmin · Answer 1 · 2018-01-16T02:29:31+0000

Answer:

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.

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