Aiko (Single, Age 29) Earned $40,000 in 2014

question 91

Short Answer

Aiko (single, age 29) earned $40,000 in 2014. He was able to contribute $1,800 ($150/month) to his employer sponsored 401(k). What is the total saver's credit that Aiko can claim for 2014?

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Definitions:

Supply Equation

An economic formula that represents the relationship between the quantity of a good supplied by producers and the price of the good.

Price Floor

A minimum price set by the government for certain goods and services, intended to prevent prices from dropping too low.

Shortage/Surplus

A situation in the market where the amount of a product that consumers want to buy is greater than the amount available (resulting in a shortage), or the available amount is more than what consumers want to purchase (leading to a surplus).

Demand Equation

A formula that calculates the amount of a product consumers are willing to buy based on its price, income levels, and taste and preferences among other factors.