Question
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
Answers
GPT-4o mini
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**.
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**.