Question

Tristi contributes a set percentage of her gross pay towards a 401k account and will have a total of $176,196.00 in the account by retirement. Tristi's employer also contributes a set percentage which will increase her total to $225,634.00. what is the percent increase between the total without Tristi's employer contribution and the total with? round to the nearest whole percent. 19%28%31%36%

Answer 1

The correct answer is a increase of 28%

To solve this, we need to calculate the percentage increase between two numbers.

We can do this by using the formula:

$\text{Percentage Increase=}\frac{FinalValue-StartingValue}{StartingValue|}\cdot100$

In this case, the Starting Value is the total in her account without the contrubution of the employer: $176,196.00

The Final Value is the total amount with the contribution of the employer: $225,634.00

Then:

$\text{Percentage increase=}\frac{225,634-176,19}{|176,196|}\cdot100=28.0585$

Rounded up is 28%