Jahwana works for a large corporation with a 401 (k) retirement plan. The company matches dollar for dollar the first 5% of the employee's salary contributed to the 401 (k). Jahwana currently earns $40,000 in gross salary and she currently contributes 15% of her salary into her 401 (k). How much money in dollars is the total contribution to her account every year? A) $2,000 B) $4,000 C) $6,000 D) $8,000

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3 November, 18:42

Jahwana works for a large corporation with a 401 (k) retirement plan. The company matches dollar for dollar the first 5% of the employee's salary contributed to the 401 (k). Jahwana currently earns $40,000 in gross salary and she currently contributes 15% of her salary into her 401 (k). How much money in dollars is the total contribution to her account every year? A) $2,000 B) $4,000 C) $6,000 D) $8,000

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Trinity Walton · Answer 1

D) $8,000

Explanation:

Jahwana makes an individual contribution of $6,000 to her 401 K account = $40,000 x 15% = $6,000

The corporation she works for contributes 5% of her gross income to Jahwana's 401 K account = $40,000 x 5% = $2,000

total contributions to 401 K account = $6,000 + $2,000 = $8,000