Will works for Micro Lance Computer Company and participates in its thrift and savings plan.For every $1.00 Will contributes to the plan,up to 5 percent of his salary,the company contributes $0.25.If Will's salary is $40,000 and he decides to maximize the matching contributions,how much will be contributed to Will's plan in a year by both the employer and Will?

Question

Quizplus · Accepted Answer

Will can contribute 5% of his $40,000 salary, which is $2,000. The company matches $0.25 for every $1.00 Will contributes, so the company contributes $500. Therefore, the total contribution is $2,000 (Will) + $500 (company) = $2,500.

Will Works for Micro Lance Computer Company and Participates in Its