. Lou’s gross annual income is $41,028. He is paid biweekly and has 4% deducted from his paychecks for his 401(k). His employer matches his deduction, up to 3%.

How much is deposited into Lou’s 401(k) each payday?
$94.68
$110.46
$119.67
$126.24

Question

.  Lou’s gross annual income is $41,028. He is paid biweekly and has 4% deducted from his paychecks for his 401(k). His employer matches his deduction, up to 3%.

 How much is deposited into Lou’s 401(k) each payday? 
  $94.68
        $110.46
        $119.67
        $126.24

danjs · Answer

if he is paid biweekly, how many paychecks are there each year

danjs · Answer

52 weeks in a year, half of that is 26 paydays

danjs · Answer

Each paycheck is 1/26  of his annual income

danjs · Answer

He puts 4% and his employer 3% into the 401k, total of 7% or 0.07

$$\frac{ 1 }{ 26 }*(annual ~income)*(0.07) = 401k~deposit~each~payday$$

danjs · Answer

what does that come to?

u understand everything alright?

anonymous · Answer

yes