Question

Jahwana works for a large corporation with a​ 401(k) retirement plan. The company matches dollar for dollar the first​ 5% of the​ employee's salary contributed to the​ 401(k). Jahwana currently earns​ $40,000 in gross salary and she currently contributes​ 15% of her salary into her​ 401(k). How much money in dollars is the total contribution to her account every​ year?A) $2,000 B) $4,000 C) $6,000 D) $8,000

Answer 1

Answer:

D) $8,000

Explanation:

Jahwana makes an individual contribution of $6,000 to her 401 K account = $40,000 x 15% = $6,000

The corporation she works for contributes 5% of her gross income to Jahwana's 401 K account = $40,000 x 5% = $2,000

total contributions to 401 K account = $6,000 + $2,000 = $8,000