Question

A technical writer makes $45,000 per year and has just begun contributing 8% of her salary to her 401(k) plan. If her employer matches 6% of her contributions, how much will have been contributed to the 401(k) plan after 2 years?
A. $7632
B. $3816
C. $3600
D. $7200

Answer 1

The answe is D $7632

Answer 2

Answer:

A. $7632

Step-by-step explanation:

We have been given that a technical writer makes $45,000 per year and has just begun contributing 8% of her salary to her 401(k) plan.

Let us find the amount contributed by writer to her 401(k) plan by calculating 8% of $45,000.

$\text{The amount contributed by the writer to her 401(k) plan per year}=\frac{8}{100}\times \ 45,000$

$\text{The amount contributed by the writer to her 401(k) plan per year}=0.08\times \ 45,000$

$\text{The amount contributed by the writer to her 401(k) plan per year}=\ 3,600$

Since her employer matches 6% of her contributions, so we can find employer's contribution to her 401(k) plan by calculating 6% of $3600.

$\text{The amount contributed by the employer to writer's 401(k) plan per year}=\frac{6}{100}\times \ 3,600$

$\text{The amount contributed by the employer to writer's 401(k) plan per year}=0.06\times \ 3,600$

$\text{The amount contributed by the employer to writer's 401(k) plan per year}=\ 216$

$\text{Total amount contributes to the writer's 401(k) plan per year}=\ 3600+\ 216$

$\text{Total amount contributes to the writer's 401(k) plan per year}=\ 3816$

Let us find the amount contributed to the writer's 401(k) plan after 2 years by multiplying $3816 by 2.

$\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\ 3816\times 2$

$\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\ 7632$

Therefore, the total amount contributed to writer's 401(k) plan after 2 years will be $7632 and option A is the correct choice.