Georgia Assessments for the Certification of Educators GACE Practice Test

To determine the amount the company will contribute based on Scott's contribution to his 401k, we first calculate Scott's contribution. If Scott earns a salary of $2,000 per month and contributes 4% to his 401k, we calculate his contribution as follows:

4% of $2,000 = 0.04 * $2,000 = $80.

This means Scott will contribute $80 from his paycheck to his 401k each month. Typically, companies will match employee contributions up to a certain percentage, but without additional information about the company's matching policy, we can only accurately determine Scott's direct contribution.

The correct answer provides a valid calculation based on the information given, which is why it is appropriate. If further details about the company's contribution policy were provided (e.g., if the company matches contributions), a different calculation might apply. However, since we don't have that information, we focus solely on Scott's contribution to confirm that $80 is indeed his total contribution.