Why this is correct (Q8 — total annual contribution $5,400): This is another simple arithmetic illustration combining employee deferral and employer match. Compute the employee contribution: 6% of $60,000 = $3,600. Compute the employer match: 100% of the first 3% of pay = 3% of $60,000 = $1,800. Add them: $3,600 + $1,800 = $5,400. (Short working line: 60,000 × 0.06 = 3,600; 60,000 × 0.03 = 1,800; total = 5,400.) The example shows how even a modest employee deferral plus a partial match produces a larger total inflow than the employee’s deferral alone.

Practical takeaway & budgeting: Use these calculations to compare employer match formulas and decide what to contribute. In many cases it’s smart to contribute at least as much as needed to get the full match because that boosts your effective saving rate without requiring much extra reduction in take-home pay. You can also model how raises and percent increases change total inflows over time; small increases compounded annually can materially affect retirement savings over decades.