Question

An employer offers a retirement program in which 9.5% of a worker's salary is deducted, and an additional 16% is added to the fund. If the starting salary is $33,000, how much would an employee have deposited into their fund in the first year?

Answer 1

To determine the total contribution to the retirement fund, both the employee's contribution of 9.5% and the employer's additional 16% based on the $33,000 salary are calculated and summed, resulting in $8,415 deposited in the first year.

Step-by-step explanation:

If an employer offers a retirement program where 9.5% of a worker's salary is deducted and an additional 16% is contributed to the fund, we can calculate how much would be deposited in the first year based on a $33,000 starting salary. First, we find the 9.5% deduction from the salary by multiplying $33,000 by 0.095, which equals $3,135. This is the amount the worker contributes. Then, we calculate the employer's contribution by multiplying $33,000 by 0.16, which equals $5,280. To find the total amount deposited, we add the worker's contribution and the employer's contribution together: $3,135 + $5,280 = $8,415.