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Nancy’s gross annual income is $46,905. She is paid monthly and has 9% deducted from her paychecks for her 403(b). Her employer matches her deduction, up to 3%.

How much is deposited into her retirement plan each payday?


Answers:

$234.52


$351.79


$469.05


$703.58

_______________

Thank you in advance!

User David Sulpy
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1 Answer

20 votes
20 votes

Answer:

The amount deposited into her retirement plan each payday is;

$469.05

Explanation:

From the details given on Nancy's income, we have;

Nancy's gross annual income = $46,905

The percentage deducted from her monthly paycheck for her 403(b) = 9%

The percentage her employer matches her deductions up to = 3%

Therefore, we have;

Her monthly pay = (Her gross annual income)÷12

∴ Her monthly pay = $46,905÷12 = $3,908.75

The amount deducted from her paycheck, A = 9% of $3,908.75

∴ A = 9/100 × $3,908.75 = $351.7875

The amount her employer matches her deductions up to, B = 3% of $3,908.75

∴ B = 3/100 × $3,908.75 = $117.2625

Therefore;

The amount deposited into her retirement plan each payday, D = A + B

∴ D = $351.7875 + $117.2625 = $469.05

The amount deposited into her retirement plan each payday, D = $469.05.

User Shaneequa
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