@Becki @ehuman @ranga

Terrell has an employer-sponsored 401(k) plan that he contributes to, and his employer matches 25% of his 401(k) contributions. Terrell's salary is $40,000, and last year he contributed $5000 to his 401(k) plan. What was the total amount that was contributed to his 401(k) last year?

A. $6700
B. $6250
C. $5000
D. $3600

Question

@Becki @ehuman @ranga 

Terrell has an employer-sponsored 401(k) plan that he contributes to, and his employer matches 25% of his 401(k) contributions. Terrell's salary is $40,000, and last year he contributed $5000 to his 401(k) plan. What was the total amount that was contributed to his 401(k) last year?

 		A.	$6700
 		B.	$6250
 		C.	$5000
 		D.	$3600

anonymous · Answer

This is an easy calculator problem. :) What's 25% of what Terrell contributed? There should even be a % button on your calculator.

ranga · Answer

Total contribution = Terrell's contribution + (0.25 x Terrell's contribution)
                          = 1.25 x Terrell's contribution