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18. George puts 7% of his paycheck in a Traditional 401(k) plan. He earns $70,000 per year. His average tax rate is 18% and his
18. George puts 7% of his paycheck in a Traditional 401(k) plan. He earns $70,000 per year. His average tax rate is 18% and his marginal tax rate is 22%. His employer matches contributions on the first 4% his salary dollar for dollar (100%) and the next 6% for 50 cents per dollar (50%). How much in total contributions will go into his account (include his contribution and the company's contribution.)
A. $3,850
B. $0
C. $8,750
D. $9,800
E. $4,900
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