Question

Amanda’s new job has a 50% employer match on the first 4% of her salary contributed to her 401(k). How much was deposited in Amanda’s account if she makes $61,000 a year and she took advantage of the entire contribution match?

Answer 1

$2,440 + $1,220 = $3,660

Explanation:

If Amanda makes $61,000 a year, and she contributes 4% of her salary to her 401(k), that would be:

$61,000 x 0.04 = $2,440

Since her employer has a 50% match on the first 4% of her salary, they would contribute:

$2,440 x 0.5 = $1,220