A company gives each employee the opportunity to invest from each paycheck upto 8 percent of his or her salary in a personal,interest accruing retirement fund. The company automatically contributes equivalent of 2% of an employeee's paycheck to such a fund, regardless of whether or not the employee invests anything, and will also contribute an amount equivalent to any investment the employee elects to make upto 3% of the employee's paycheck.
If the statements above are true, which of the following are also true?
A) The company wishes to deter its employees from investing more than 3% of their paychecks in the retirement fund.
B) If the employee elects to invest 4% of his paycheck in the retirement fund, the total value of each investment, including company's contribution, will be equivalent to 9% of his paycheck.
C)An employee gains nothing by investing more than 3% of his paycheck in the retirement fund
D)If the total value of each investment in certain employee's retirement fund,including company contributions, is the equivalent of 4% of his paycheck, then he has elected to invest 2% of his paycheck.
E)the smaller the amount of his own paycheck an employee invests in the retirement fund, the greater the amount that the company will contribute to the fund.
[spoiler]OA:B[/spoiler]
Please explain your reasoning
If the statements above are true, which of the following are also true?
A) The company wishes to deter its employees from investing more than 3% of their paychecks in the retirement fund.
B) If the employee elects to invest 4% of his paycheck in the retirement fund, the total value of each investment, including company's contribution, will be equivalent to 9% of his paycheck.
C)An employee gains nothing by investing more than 3% of his paycheck in the retirement fund
D)If the total value of each investment in certain employee's retirement fund,including company contributions, is the equivalent of 4% of his paycheck, then he has elected to invest 2% of his paycheck.
E)the smaller the amount of his own paycheck an employee invests in the retirement fund, the greater the amount that the company will contribute to the fund.
[spoiler]OA:B[/spoiler]
Please explain your reasoning
