Answer:
Amount deposited into Lou's 401(k) each payday is $119.665
Step-by-step explanation:
Here we have gross income annual $41028
Payment frequency = Every two weeks
Number of payments (Pay days per annum) = 12 × 2 = 24 payments annually
Amount payed on pay day = $41028/24 = $1709.5
Amount deducted from Lou's paycheck on payday = 4% of Pay = 0.04×$1709.5
∴ Amount deducted from Lou's paycheck on payday = $68.38
Amount employer matches = 3% of pay = 0.03 × $1709.5 = $51.285
Therefore, amount deposited into Lou's 401(k) each payday = $68.38 + $51.285
Amount deposited into Lou's 401(k) each payday = $119.665.
