Question

ramon has an employer that offers a generours 401k returement plan roman is allowed to deduct up to 10% from his paycheck to go directly into his retirement account and his emplyer will pay $0.75 for every $1.00 that roman contributes if he contributes 10% of his $80,000 annual gross salary to his 401k how much will actually be going into the retirement account each year ?

Answer 1

14000

Explanation:

A year he contributes :10/100 × 80000= 8000

Then his employer pays 0.75 × 8000= 6000

The total money contributed to is

401k is = 8000 + 6000 = 14000