a person earns $68,000 a year. employees can contribute 5% of their income to a retirement account. the…

a person earns $68,000 a year. employees can contribute 5% of their income to a retirement account. the company will match 75% of the employees contributions. how much will be in the persons retirement account after one year if the employee contributes the full 5%? you may use your calculator to help you. a $1,020 b $2,550 c $5,950 d $3,400

a person earns $68,000 a year. employees can contribute 5% of their income to a retirement account. the company will match 75% of the employees contributions. how much will be in the persons retirement account after one year if the employee contributes the full 5%? you may use your calculator to help you. a $1,020 b $2,550 c $5,950 d $3,400

Answer

Explanation:

Step1: Calculate employee's contribution

$68000\times 5%=68000\times0.05 = 3400$

Step2: Calculate company's match

$3400\times75%=3400\times0.75 = 2550$

Step3: Calculate total in retirement account

$3400 + 2550=5950$

Answer:

C. $5,950$