Question

A personal trainer makes $25,000 per year and has just begun contributing 6% of his salary to his 401(k) plan. If his employer matches 9% of his contributions, how much will have been contributed to the 401(k) plan after 4 years?

Answer 1

6% of $25,000 is $1,500 a year
9% of $1,500 is $135 that his employer gives him
The total of that is $1,635 a year
$1,635*4=$6,540 total after 4 years