Answer: $10.80
Step-by-step explanation:
1. Compute the employee's monthly contribution
The problem states that the employee decides to contribute 6% of their $48,000 annual salary monthly.
Annual salary: $48,000
Monthly salary = Annual salary / 12 months
= $48,000 / 12
= $4,000
Monthly contribution = 6% of monthly salary
= 0.06 * $4,000
= $240
2. Compute the company's matching contribution
The company offers a 4.5% matching contribution to the employee's retirement annuity plan. Since we have determined the monthly salary we can not calculate the monthly matching contribution.
Monthly matching contribution = 4.5% of the employee's monthly salary
= 0.045 * $240
= $10.80
So, the company's monthly contribution to the annuity plan will be $10.80.
