A non-profit organization offers a 5% salary contribution to John's 403b plan and matching 5% when John contributes 5% of his/her salary. John makes $56,000 a year.
-What is the amount of total contribution to his 403b if John contributes 5% of his own money?

Question

Quizplus · Accepted Answer

John contributes 5% of $56,000, which is $2,800. The organization contributes 5% automatically ($2,800) and matches John's 5% contribution with another $2,800. The total contribution is $2,800 (John) + $2,800 (automatic) + $2,800 (matching) = $8,400.

A Non-Profit Organization Offers a 5% Salary Contribution to John's