To determine the total amount contributed by the company to Sally's 401-K account for the first two years, we would need to know Sally's gross salary for those years and the percentage of her salary contributed to the 401-K plan.
If we have the necessary information, we can calculate the contributions made by Sally and the company separately for each year, and then add them together.
Let's assume that Sally's gross salary for the first two years is $50,000 and she contributes 3% of her salary to the 401-K plan. In this case, Sally's contributions for each year would be:
Year 1: $50,000 * 3% = $1,500
Year 2: $50,000 * 3% = $1,500
To determine the company's contributions, we need to know the matching percentage. In this case, it is mentioned that the company matches up to 5% of the gross salary.
So, the company's contributions for each year would be:
Year 1: $50,000 * 5% = $2,500
Year 2: $50,000 * 5% = $2,500
To calculate the total amount contributed by the company for the first two years, we simply add the contributions for each year:
$2,500 (Year 1) + $2,500 (Year 2) = $5,000
Therefore, the total amount contributed by the company to Sally's 401-K account for the first two years is $5,000.
Moving on to part (c):
1. To find Sally's gross salary for the 3rd year after a 4.0% raise, we would need to know her previous gross salary or a starting point. If we have that information, we can calculate the raise by multiplying her previous gross salary by the raise percentage (4.0%) and then adding it to her previous gross salary.
2. To determine how much Sally has contributed to her 401-K plan during her third year, we need to know her gross salary for the year and the percentage she contributed. Once we have that information, we can calculate the contribution amount by multiplying her gross salary by the contribution percentage.