a company offers 4.5% matching on a retirement annuity plan. an employee with a $48,000 annual salary…

a company offers 4.5% matching on a retirement annuity plan. an employee with a $48,000 annual salary decides to contribute 6% monthly. what will be the companys monthly contribution to the annuity? a $420 b $2160 c $180 d $240

a company offers 4.5% matching on a retirement annuity plan. an employee with a $48,000 annual salary decides to contribute 6% monthly. what will be the companys monthly contribution to the annuity? a $420 b $2160 c $180 d $240

Answer

Explanation:

Step1: Calculate monthly salary

Annual salary is $48000$. Monthly salary = $\frac{48000}{12}=4000$.

Step2: Calculate company's monthly contribution

Company contributes 6% of monthly salary. Contribution = $4000\times0.06 = 240$.

Answer:

D. $240$