Answer to Question #261760 in Financial Math for Katie

Question

Alicia makes $52,000 per year. Her company offers a 401(k) retirement plan in which they will match 50% of her contributions up to 10% of her salary. She can make contributions up to a maximum of 25% of her salary. Alicia only wants to contribute an amount equal to her employer's maximum contribution to her account. How much should she contribute monthly?

a. $216.67 b. $1,083.33 c. $108.33 d. $433.33

Answer 1

Answer: d. $433.33

Her company offers a retirement plan in which they will match up to 10% of her salary.

Alicia makes $52,000 per year.

$\frac{52000}{12} \times 0.1 (10\%)= 433.33333$