you make $50,000 per year. you contribute 6% of your income to a 401k and your employer matches 100% up to…

you make $50,000 per year. you contribute 6% of your income to a 401k and your employer matches 100% up to 5%. match the amounts to what they represent your annual contribution (employee) choose choose $1,000 your employers annual contribution 2,500 3,000 the total contribution to your 401k (employee + employer) 5,500 $6,000 $1,500 $5,000
Answer
Explanation:
Step1: Calculate employee contribution
The employee contributes 6% of $50,000. The formula is $50000\times0.06$. So, $50000\times0.06 = 3000$.
Step2: Calculate employer contribution
The employer matches 100% up to 5% of the income. The formula is $50000\times0.05$. So, $50000\times0.05=2500$.
Step3: Calculate total contribution
The total contribution is the sum of the employee and employer contributions. The formula is $3000 + 2500$. So, $3000+2500 = 5500$.
Answer:
Your annual contribution (employee): $3,000 Your employer's annual contribution: $2,500 The total contribution to your 401k (employee + employer): $5,500