(Retirement Savings Plans MC)
An employee is considering two job offers.
First offer: $57,000 yearly salary with an 8% matching 401k
Second-offer: $63,000 yearly salary with a 4% matching 401k
The employee plans to stay at either job for at least 4 years, assumes there are no salary increases, and will make 401k
contributions at the same rate the company matches. After 4 years, the total value of the first offer, including gross income and tot
401k contributions, is $264,480.
Which job has the better overay structure, and by how much?
The second job offer
y $6,780.
O The first job offer is better by $6,780.
O The second job offer is better by $7,680.
O The first job offer is better by $7,680.
