Question

question 13 of 25
edison’s employer matches 20% of edison’s contributions to his 401(k) plan.
if edison’s employer contributed $700 to the plan last year, how much did
edison contribute to the plan last year?

a. $1400

b. $4200

c. $3500

d. $2800

Explanation:

Step1: Define the relationship

Let \( x \) be Edison's contribution. The employer's contribution is 20% of \( x \), so the employer's contribution is \( 0.2x \).

Step2: Set up the equation

We know the employer contributed $700, so \( 0.2x = 700 \).

Step3: Solve for \( x \)

To find \( x \), divide both sides of the equation by 0.2: \( x=\frac{700}{0.2} \). Calculating this, \( \frac{700}{0.2}=700\div0.2 = 3500 \).

Answer:

C. $3500