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
(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 calculate the company's contribution to David's 401K, we first need to determine 6% of his salary, as the company matches 100% of his contributions up to that limit.
1. **Calculate 6% of David's salary**:
\[
6\% \text{ of } \$29,512 = 0.06 \times 29,512 = 1,770.72
\]
Since David is contributing 8% of his salary, we find out what that amounts to as well, although it will not affect the company's match as they only match up to 6%.
2. **Calculate 8% of David's salary** (for reference):
\[
8\% \text{ of } \$29,512 = 0.08 \times 29,512 = 2,360.96
\]
3. **Determine the company's contribution**:
The company will match up to 6%, which we already calculated as \$1,770.72.
Thus, **the company will contribute \$1,770.72** to David's 401K.
The correct response is: **$1,770.72**.
1. **Calculate 6% of David's salary**:
\[
6\% \text{ of } \$29,512 = 0.06 \times 29,512 = 1,770.72
\]
Since David is contributing 8% of his salary, we find out what that amounts to as well, although it will not affect the company's match as they only match up to 6%.
2. **Calculate 8% of David's salary** (for reference):
\[
8\% \text{ of } \$29,512 = 0.08 \times 29,512 = 2,360.96
\]
3. **Determine the company's contribution**:
The company will match up to 6%, which we already calculated as \$1,770.72.
Thus, **the company will contribute \$1,770.72** to David's 401K.
The correct response is: **$1,770.72**.