Question

Danny works for a company that matches his​ 401(k) retirement contributions at a rate of ​"$0.25 per​ $1" of his​ contributions, up to 6​% of his salary. Danny earns ​$50000​/year. Using Doc​ White’s advice, what is the minimum amount of salary that Danny should contribute to his​ 401(k) plan each​ year? A. ​$50000​/year B. ​$3000​/year C. ​$12500​/year D. ​$12000​/year

Answer 1

Danny should contribute a minimum of 6% of his salary to his 401(k) plan each year so the amount is B. ​$3000​/year

Step-by-step explanation:

Danny should contribute a minimum of 6% of his salary to his 401(k) plan each year.

His salary is $50,000, so

Calculating - 6% of $50,000

= 6/100 x 50,000

= 30,0000/100

= 3000

Therefore, option B, $3,000/year, is the minimum amount of salary that Danny should contribute to his 401(k) plan each year.

Answer 2

B $3000/year

Step-by-step explanation:

The minimum amount of salary that Danny should contribute to his 401(k) plan each year = 6% of his annual salary = 6/100 × $50000 = $3000/year