Answer:
A. $7632
Step-by-step explanation:
We have been given that a technical writer makes $45,000 per year and has just begun contributing 8% of her salary to her 401(k) plan.
Let us find the amount contributed by writer to her 401(k) plan by calculating 8% of $45,000.
[tex]\text{The amount contributed by the writer to her 401(k) plan per year}=\frac{8}{100}\times \$45,000[/tex]
[tex]\text{The amount contributed by the writer to her 401(k) plan per year}=0.08\times \$45,000[/tex]
[tex]\text{The amount contributed by the writer to her 401(k) plan per year}=\$3,600[/tex]
Since her employer matches 6% of her contributions, so we can find employer's contribution to her 401(k) plan by calculating 6% of $3600.
[tex]\text{The amount contributed by the employer to writer's 401(k) plan per year}=\frac{6}{100}\times \$3,600[/tex]
[tex]\text{The amount contributed by the employer to writer's 401(k) plan per year}=0.06\times \$3,600[/tex]
[tex]\text{The amount contributed by the employer to writer's 401(k) plan per year}=\$216[/tex]
[tex]\text{Total amount contributes to the writer's 401(k) plan per year}=\$3600+\$216[/tex]
[tex]\text{Total amount contributes to the writer's 401(k) plan per year}=\$3816[/tex]
Let us find the amount contributed to the writer's 401(k) plan after 2 years by multiplying $3816 by 2.
[tex]\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\$3816\times 2[/tex]
[tex]\text{Total amount contributes to the writer's 401(k) plan after 2 years}=\$7632[/tex]
Therefore, the total amount contributed to writer's 401(k) plan after 2 years will be $7632 and option A is the correct choice.
