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Question
An employee contributes 9% of his salary to his 401(k) plan and the employer matches with 40% of the first 6% of the employee's salary. The employee earns $90,000 and is in a 28% tax bracket. If the employee earns 10% on the plan investments, what is his one-year rate of return relative to the net amount of money he invested?
A. 16.28%
B. 51.25%
C. 90.07%
D. 93.52%
E. 29.72%
Answer
This answer is hidden. It contains 121 characters.
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