Question

Lydia’s salary is $60,530, and she makes 401K contributions. She saves 7% of her salary and her company will match 50% of her 7% contribution. How much does her company contribute to her 401K? (1 point) Responses $2,118.55 $2,118.55 $4,237.10 $4,237.10 $6,795.10 $6,795.10 $8,474.20

Answer 1

To calculate Lydia's 401K contribution and her company's match, follow these steps:

1. **Calculate Lydia's 7% contribution:**
\[
\text{Lydia's contribution} = 60,530 \times 0.07 = 4,237.10
\]

2. **Calculate the company's match:**
The company matches 50% of Lydia's contribution.
\[
\text{Company's contribution} = 4,237.10 \times 0.50 = 2,118.55
\]

Thus, Lydia's company contributes **$2,118.55** to her 401K.