A company offers 4.5% matching on a retirement annuity plan. An employee with a $48,000 annual salary decides to contribute 6% monthly. What will be the company's monthly contribution to the annuity be ?

The company's contribution to the retirement annuity plan is based on their 4.5% matching policy. Since the employee contributes 6% of their salary, and the company matches up to 4.5%, the company will contribute 4.5% of the employee's monthly salary.

Let's break this down:

1. **Employee's annual salary**: $48,000
2. **Monthly salary**: 
   \[
   \frac{48,000}{12} = 4,000
   \]
3. **Company's matching percentage**: 4.5%
4. **Company's monthly contribution**: 
   \[
   4.5\% \times 4,000 = 0.045 \times 4,000 = 180
   \]

Thus, the company's monthly contribution to the annuity is **$180**.

Would you like more details on this calculation or how retirement matching works?

Here are some related questions:
1. How much will the employee contribute monthly?
2. What is the total monthly contribution (employee + company)?
3. How does the company's contribution change if the salary increases?
4. What happens if the employee contributes less than 4.5%?
5. How does retirement growth factor in over time?

**Tip**: Always ensure you maximize your employer's matching contribution—it’s essentially "free" money added to your retirement!

A company offers 4.5% matching on a retirement annuity plan. An employee with a $48,000 annual salary decides to contribute 6% monthly. What will be the company's monthly contribution to the annuity?

Find out how to calculate the company's monthly contribution to a retirement annuity plan with a 4.5% matching policy for an employee earning $48,000 annually. This example covers key percentage concepts and proportional calculations suitable for students in Grades 9-11.

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