Danielle Puts 8 Percent of Her Paycheck in a 401(k)plan

Danielle puts 8 percent of her paycheck in a 401(k)plan administered by her employer.Danielle earns $55,000 per year and is in the 28 percent tax category.What annual tax savings does she get from her contribution? If her employer matches contributions on the first 5 percent of her salary dollar for dollar and the next 3 percent with 50 cents for every dollar,how much will her employer put into her account this year? (Show all work.)

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Contribution = 0 08 × $55,000 = $4,400 T...

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