SOLUTION: Sally Rogers, an employee of Advanced Ideas, Inc. has a gross salary of $45,000 per year. Her company will match employee 401K contributions up to 5% of the gross salary.
Due t
Algebra.Com
Question 202168This question is from textbook
: Sally Rogers, an employee of Advanced Ideas, Inc. has a gross salary of $45,000 per year. Her company will match employee 401K contributions up to 5% of the gross salary.
Due to personal financial constraints, Sally is only able to put 2% of her salary into her 401K during her first two years. However, after receiving a 3.5% raise at the end of her first year and a 4.0% raise at the end of her second year, she is able to increase her 401K contribution to 5% at the beginning of her third year.
a. Execute the research necessary to understand the basic structure of a 401K plan. Write a 2 to 3 paragraph summary of your findings.
b. How much did Advanced Ideas, Inc. put into Sally’s 401K in her first two years?
c. How much will Sally contribute to her own 401K
during her third year?
This question is from textbook
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
B) 4500*.02=900.00
4500*1.035=46575*.02=931.50
900.00+931.50=$1831.50 for first two years by company
C) 46575*1.04=48438*.05=$2421.90 the third year by Sally
RELATED QUESTIONS
An employee has a base salary of $24,000 per year. The employee also receives a 2 percent (answered by ewatrrr)
An employee joined a company in 1987 with starting salary of 50,000. Every year this... (answered by Theo)
The probability that a trainee will remain with a company is 0.6. The probability that an (answered by stanbon)
The probability that a management trainee will remain with a company is 0.6.The... (answered by ikleyn)
The retirement account of each employee in a company receives money from two sources each (answered by fractalier)
In addition to an employee's salary, a company typically spends an additional 33% of the... (answered by Boreal)
Jill ,an employee at old nave bugets 1/5 of her yearly salary for clothing.Jill's... (answered by Maths68)
Basic Salary of an employee is Rs. 18,000 and Allowances are Rs. 9000. According to the... (answered by dkppathak)
Basic Salary of an employee is Rs. 18,000 and Allowances are Rs. 9000. According to the... (answered by Theo)