Q:

for the first 6% of Emily's salary her employer match 100%of her 401(K) contribution, and from 6% to 12%, Emily's employer matches 50%of her 401(K) contributions, Emily's salary is 40,000 and last year, she contributed $5000 to her 401(K) plan. what is her employer's contribution to the 401(K)

Accepted Solution

A:
Answer:$3600Step-by-step explanation:Given: Total Salary of Emily=40000  Total contribution of emily=$5000To Find: Employer's contribution to the 401(k).Solution:for the first [tex]6[/tex]% of her salary:   contribution made by Employer=[tex]100[/tex]%                                                         [tex]40000\times 6\setminus 100= 2400[/tex]Total contribution left=[tex]5000[/tex] - [tex]2400[/tex]=[tex]3600[/tex]for the next [tex]6[/tex]  to [tex](12)[/tex] of her salary:   Emily's contribution=[tex]40000\times(12- 6)\setminus 100[/tex]                                      [tex]2400[/tex]   contribution made by Employer=[tex]50[/tex]%                                                          [tex]50\setminus 100\times 2400[/tex]                                                          [tex]1200[/tex]Total contribution left=[tex]2600-2400[/tex]                                       [tex]200[/tex]For the rest of contribution Employer will not paySo,Total contribution made by emily's Employer in 401(k)=[tex]2400+1200=3600[/tex] Hence, The total contribution made by Employer is $3600