Question

question 8 of 10
rachaels employer matches 16% of rachaels contributions to her 401(k)
plan. if rachaels employer contributed $400 to the plan last year, how much
did rachael contribute to the plan last year?

a. $2100

b. $6400

c. $2500

d. $2900

Explanation:

Step1: Define the relationship

Let \( x \) be Rachael's contribution. The employer contributes \( 16\% \) of \( x \), which is \( 0.16x \). We know the employer's contribution is $400, so we set up the equation \( 0.16x = 400 \).

Step2: Solve for \( x \)

To find \( x \), we divide both sides of the equation by \( 0.16 \):
\( x=\frac{400}{0.16} \)
Calculating this, \( \frac{400}{0.16}=2500 \).

Answer:

C. $2500