Chadwick contributes 17% of his $68,600 annual salary to his 401(k) plan. What is his pre-tax income?
2 answers:
Answer:
His pre-tax income is $56938.
Step-by-step explanation:
Consider the provided statement:
Chadwick contributes 17% of his annual salary to his 401(k) plan.
Therefore,
Thus, Chadwick contributes $11662 in 401(k) plan.
Pretax earnings exclude taxes, therefore subtract $11662 from his annual salary.
$68600-$11662=$56938
Hence, his pre-tax income is $56938.
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