Hillary works for a company that offers 75% matching on all of her retirement contributions. For the last 35 years, Hillary has been depositing $200 into her 401 (k) savings account that pays 4.99% interest annually. After 35 years, how much money has been deposited into the 401 (k) by both Hillary and her employer?

Question

Amara

Mathematics

21 February, 08:49

Hillary works for a company that offers 75% matching on all of her retirement contributions. For the last 35 years, Hillary has been depositing $200 into her 401 (k) savings account that pays 4.99% interest annually. After 35 years, how much money has been deposited into the 401 (k) by both Hillary and her employer?

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Malachi Middleton · Answer 1

Answer: The total is $12,250.

Step-by-step explanation: First, we will calculate the amount that Hillary has deposited over the past 35 years. She has deposited $200 for each of the past 35 years. The total that she has deposited is 200 x 35 = $7,000.

Her employer also deposits into her account 75% of what she has deposited. In order to calculate their contribution you need to multiply $7,000 x. 75 = $5,250.

The total that has been deposited into the account is $7,000 + $5,250 = $12,250.