In serious need of help!

Question

Wayne is 37 years old and has his retirement savings in a 401(k). If he makes $110,000 annually, what is the maximum percentage of his income that he can contribute to his 401(k) plan per year? (The current maximum contribution limit is $16,500.)
A. 16.5%

B. 30%

C. 15%

D. 12%

Answer 1

Amanda,

You need to know what percent of 110,000 is equal to 16500. So we write the equation:

 

110000x = 16500

 

x = 16500 / 110000 = .15   ⇒   15%