Question

Last year a construction worker had a gross income $ 29,700, of the which he contributed 7% to his 401(k) plain. If he got paid monthly how much money would be deducted from each of paycheck for his 401(k) plan?
A. 173.25
B. 86.63
C. 39.98
D. 297.00

Answer 1

Divide the gross income by 12 to find his monthly pay:

29,700 / 12 =$2,475 per month.

Multiply his monthly pay by 7%:

2,475 x 0.07 = $173.25 into his 401(k) per month.

The answer is A.