Ratio of return relative to net amount of money he invested

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Reference no: EM13978001

An employee contributes 9% of his salary to his 401(k) plan and the employer matches with 40 percent of his first 6% of the employee's salary. The employee earns $90,000 and is in a 28% tax bracket. If the employee earns 2.5% on the plan investments, what is his one year ratio of return relative to the net amount of money he invested?

A) 16.28%

B) 51.25%

C) 80.32%

D) 93.52%

E) 29.72%

Reference no: EM13978001

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