eduardo contributes 16% of his $82,400 annual salary to his 401(k) plan. what is his pre-tax income?

Question

$82,400
$13,184
$58,656
$69,216

Answer 1

To find Eduardo's pre-tax income after his 401(k) contribution, we need to calculate the amount he contributes to the 401(k) and then subtract that from his annual salary.

1. Calculate 16% of his annual salary: \[ \text{Contribution} = 0.16 \times 82,400 = 13,184 \]

2. Subtract the contribution from his annual salary to find his pre-tax income: \[ \text{Pre-tax income} = 82,400 - 13,184 = 69,216 \]

So, Eduardo's pre-tax income is $69,216.