Latasia's annual salary is $66,410, and she makes 401K contributions. Her company will match 50% of the amount she saves up to 8%. If she contributes 10% of her salary to her 401K, how much does her company contribute to her 401K? (1 point) $1,328.20 $2,656.40 $4,237.10 $5,312.80

Answer 1

First, let's calculate 8% of Latasia's salary to find the limit for the company match.

1. Calculate 8% of Latasia's salary: \[ 8% \text{ of } 66,410 = 0.08 \times 66,410 = 5,312.80 \]

2. Calculate Latasia's contribution at 10%: \[ 10% \text{ of } 66,410 = 0.10 \times 66,410 = 6,641.00 \]

Since Latasia contributes 10% ($6,641.00), which is above the 8% limit ($5,312.80), the company will match only up to 8% of her salary.

3. Calculate the company match: The company matches 50% of her contribution up to the 8% limit. \[ \text{Company Match} = 0.50 \times 5,312.80 = 2,656.40 \]

Thus, the amount the company contributes to her 401K is $2,656.40.

The answer is $2,656.40.