You just graduated and started your new job. Your starting salary is $70,000/year. Your employer's 401(k) plan states that your employer will contribute 2% of your salary to your 401(k) and the will match your contributions, $1-for $1, up to 5% of your salary. Please answer the following questions: 1. How much ($) will your employer contribute to your 401(k) per year if you make $0 contributions. 2. What is the minimum amount ($) that you must contribute per year to get the maximum match from your employer?
You just graduated and started your new job. Your starting salary is $70,000/year. Your employer's 401(k) plan states that your employer will contribute 2% of your salary to your 401(k) and the will match your contributions, $1-for $1, up to 5% of your salary. Please answer the following questions: 1. How much ($) will your employer contribute to your 401(k) per year if you make $0 contributions. 2. What is the minimum amount ($) that you must contribute per year to get the maximum match from your employer?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer both a,b. Answer it within 40mins. please.
You just graduated and started your new job. Your starting salary is $70,000/year. Your employer's 401(k) plan states that your employer will contribute 2% of your salary to your 401(k) and the will match your contributions, $1-for $1, up to 5% of your salary. Please answer the following questions:
1. How much ($) will your employer contribute to your 401(k) per year if you make $0 contributions.
2. What is the minimum amount ($) that you must contribute per year to get the maximum match from your employer?
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