Question

Last year, a construction worker had a gross income of $29,700, of which he contributed 7% to his 401(k) plan. if he got paid monthly, how much was deducted from each paycheck for his 401(k) plan?

Answer 1

$173.75

Step-by-step explanation:

Answer 2

Total contribution for 401(k) annually = 0.07*29,700 = 2,079

Amount deducted from monthly paycheck = 2,079/12 = $173.75