Asher's gross annual income is $43,908 . He is paid monthly and has 6% deducted from his paychecks for his 401k. His employer matches his deduction, up to 4% .
How much is deposited into Asher's 401k each payday ?
---------------------------------------- Find Monthly Income ---------------------------------------- Gross Annually Income = $43 908 Gross Monthly Income = $43 908 ÷ 12 Gross Monthly Income = $3659
---------------------------------------- Paycheck deducted for 401k ---------------------------------------- 6% of $3659 = 0.06 x 3659 = $219.54 ---------------------------------------- Employer contribution to his 401k ---------------------------------------- 4% of $2659 = 0.04 x 3659 = $146.36
---------------------------------------- Total contribution to his 401k ---------------------------------------- $219.54 + $146.36 = $365.90
---------------------------------------- Answer: $365.90 (Answer C) ----------------------------------------