Alfrie's employer contributes an amount equivalent to 8 percent of her salary each month to a(n) _____. Alfrie personally contributes $100 monthly. When she retires, these accumulated funds will be used to provide her with an annuity.

Question

Quizplus · Accepted Answer

The fact that Alfrie's employer contributes an amount equivalent to 8% of her salary each month indicates that this is a contributory plan. Additionally, the fact that she personally contributes $100 monthly further supports this as a contributory plan. This type of plan allows employees to contribute a portion of their salary towards retirement savings, with the employer typically also making contributions. Upon retirement, the accumulated funds are used to provide the employee with an annuity. Therefore, choice D - Contributory plan - is the best option.

Alfrie's Employer Contributes an Amount Equivalent to 8 Percent of Her