bos gross annual income is $45,408. he is paid semimonthly and has 6% deducted from his paychecks for his…

bos gross annual income is $45,408. he is paid semimonthly and has 6% deducted from his paychecks for his 403(b). his employer matches his deduction, up to 3%. how much is deposited into bos 403(b) each payday? $113.52 $157.18 $170.28 $227.04

bos gross annual income is $45,408. he is paid semimonthly and has 6% deducted from his paychecks for his 403(b). his employer matches his deduction, up to 3%. how much is deposited into bos 403(b) each payday? $113.52 $157.18 $170.28 $227.04

Answer

Explanation:

Step1: Calculate semimonthly income

Semimonthly means 24 pay - periods in a year. So semimonthly income $=\frac{45408}{24}=1892$.

Step2: Calculate Bo's deduction

Bo's deduction is 6% of his semimonthly income. So Bo's deduction $=0.06\times1892 = 113.52$.

Step3: Calculate employer's match

Employer matches up to 3% of his semimonthly income. So employer's match $=0.03\times1892=56.76$.

Step4: Calculate total deposit

Total deposit into 403(b) each payday = Bo's deduction+ employer's match $=113.52 + 56.76=170.28$.

Answer:

$170.28$