David’s salary is $29,512, and he makes 401K contributions. His company will match 100% of the amount he saves up to 6%. How much will his company contribute if he contributes 8% of his salary to his 401K? (1 point) Responses $1,700.00 $1,700.00 $1,770.72 $1,770.72 $1,795.10 $1,795.10 $1,825.75

Answer 1

To determine how much David's company will contribute to his 401K, we first need to calculate 6% of his salary and then find out how much he is actually contributing, since the company will only match up to that 6%.

1. Calculate 6% of David's salary: \[ 6% \text{ of } $29,512 = 0.06 \times 29,512 = $1,770.72 \]

2. David is contributing 8% of his salary, but the company will only match contributions up to the 6% limit. Thus, the company's contribution will match the 6%: \[ \text{Company Contribution} = $1,770.72 \]

So, the company's contribution to David's 401K will be $1,770.72.