To calculate Sally's 401K contribution during her first two years, you can follow these steps:
1. Find the amount of Sally's gross salary by multiplying her annual salary by the percentage contribution.
- For year one, Sally contributes 2%, so her contribution is 2% of $45,000.
- For year two, Sally still contributes 2%, so her contribution is 2% of her new salary after the 3.5% raise.
2. Calculate the raise amount using the given percentages.
- For year one, Sally receives a 3.5% raise, so her new salary is $45,000 + 3.5% of $45,000.
- For year two, Sally receives a 4.0% raise, so her new salary is her previous year's salary + 4.0% of her previous year's salary.
3. Calculate the actual 401K contribution for each year.
- For year one, Sally's contribution is 2% of $45,000, which is $900.
- For year two, Sally's contribution is 2% of her new salary after the raise.
For the third year, Sally increases her 401K contribution to 5% of her gross salary. To calculate her contribution for this year, use the following steps:
1. Determine Sally's gross salary for the third year.
- To find Sally's gross salary for the third year, apply a 4.0% raise to her second year's salary.
2. Calculate Sally's 401K contribution for the third year.
- Multiply the gross salary for the third year by 5% to find Sally's 401K contribution amount.
Please provide the salary increase percentages for the first two years to proceed with the calculation.