Question

(Retirement Savings Plans MC)

An employee is considering two job offers.

First offer: $45,000 yearly salary with a 6% matching 401k
Second offer: $55,000 yearly salary with a 5% matching 401k

The employee plans to stay at either job for at least 5 years, assumes there are no salary increases, and will make 401k contributions at the same rate the company matches. After 5 years, the total value of the first offer, including gross income and total 401k contributions, is $252,000.

Which job has the better overall pay structure and by how much?

The second job offer is better by $50,500.
The first job is better by $50,500.
The second job offer is better by $55,000.
The first job offer is better by $55,000.

Answer 1

Okay so based on all the information it gives us I believe your answer would be A. The first job offer is better by $50,500.

Answer 2

The second job offer is better by $50,250.

Answer 3

50,500*

Answer 4

thx guys

Answer 5

anytime