Question

anonymous 4 years ago 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?

Answer 1

add everything up except the 45,000 and 402(K). then subtract 45,000$ from 401. Then subtract your answers to both equations.

Answer 2

$7,632 would have been contributed to the 401(k) plan after 2 years.

Explanation:

A technical writer makes salary per year = $45,000

She contributing 8% of her salary to her 401(k) plan = 8% of 45,000

0.08 × 45,000 = $3,600

Her employer matches 6% of her contributions = 6% of 3,600

= 0.06 × 3,600 = $216.00

Total contribution for one year = 3,600 + 216.00 = $3,816

After 2 years = 3,816 × 2 = $7,632.00

$7,632 would have been contributed to the 401(k) plan after 2 years.