Lou's gross annual income is $41 028. he is paid biweekly and has 4% deducted from his paychecks for his 401 (k). his employer mathes his deduction up 3%

how much is deposited into lous 401 (k) each payday

94.68

110.46

119.67

126.24

The correct option is;

$119.67

Step-by-step explanation:

Here we have

Annual income = $41028

Percent deducted = 4%

Contribution by the Employer = 3%

Therefore his annual contribution is $41028 * 0.04 = $1641.12

Annual contribution by the employer = $41028 * 0.03 = $1230.84

Total annual contribution = $2871.96

However, he is paid every two weeks, therefore, since there are approximately 2 weekly payments each month, we have 24 payments a year.

That is the amount of money deposited into Lou's 401 (k) each payday is

$2871.96/24 = $119.665 ≈ $119.67.