Question

Jayde's gross annual income is $54,002. She is paid biweekly and has 7% deducted from her paychecks for her 403(b). Her employer matches his deduction, to 5%. How much is deposited into Jayde's 403(b) each payday?

Answer 1

54002 / 26 = 2077 is a paycheck

7% +5% = 12% = 0.12

2077 x 0.12 = 249.24 is deposited each paycheck

Answer 2

Answer:

$249.24.

Step-by-step explanation:

We have been given that Jayde's gross annual income is $54,002. She is paid biweekly and has 7% deducted from her paychecks for her 403(b).

Let us find Jayde's biweekly income by dividing her annual income by 26 as paid biweekly means paid 26 times a year.

$\text{Jayde's biweekly salary}=\frac{\ 54002}{26}$

$\text{Jayde's biweekly salary}=\ 2077$

Let us find amount contributed by Jayde for her 403(b) plan by finding 7% of $2077.

$\text{Amount contributed by Jayde for her 403(b) plan}=\frac{7}{100}\times \ 2077$

$\text{Amount contributed by Jayde for her 403(b) plan}=0.07\times \ 2077$  

$\text{Amount contributed by Jayde for her 403(b) plan}=\ 145.39$

Now let us find 5% of $2077 as Jayde's employer matches 5% of total biweekly pay.

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=\frac{5}{100}\times \ 2077$

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=0.05\times \ 2077$

$\text{Amount contributed by Jayde's employer for her 403(b) plan}=\ 103.85$

Now let us add amount contributed by Jayde and her employer to find total amount deposited into Jayde's 403(b) plan each payday.

$\text{Total amount contributed into Jayde's 403(b) plan each payday}=\ 103.85+\ 145.39$

$\text{Total amount contributed into Jayde's 403(b) plan each payday}=\ 249.24$

Therefore, an amount of $249.24 is contributed into Jayde's 403(b) each payday.