Question

Sven participates in his employer’s 401k plan. His annual salary is $52,000. Sven contributes 7.5% of his annual salary. His employer matches his contributions up to 5% of his salary. How much money will be contributed to Sven’s plan for one year?

Answer 1

$ 6,500

Explanation:

(52,000)(0.075)+(52,000)(0.05) = 3,900 + 2,600

= 6,500