To determine how much Tyler and Megan should contribute to their 401(k) plan, follow these steps:
1. Identify the combined income:
- Tyler and Megan have a combined annual income of 105000.
2. Determine the contribution rate:
- We assume that they decide to contribute 6% of their combined income to their 401(k) plan.
3. Calculate the amount to contribute:
- To find out how much they should contribute, multiply their combined income by the contribution rate (6% or 0.06).
[tex]\[
\text{Contribution} = 105000 \times 0.06
\][/tex]
4. Perform the calculation:
- [tex]\(105000 \times 0.06 = 6300\)[/tex]
Therefore, Tyler and Megan should contribute 6300 to their 401(k) plan.
