If Holly contributes 10% of her $80,000 salary to her 401(k) and her employer contributes an additional 5% to a profit share plan, along with a $2,500 IRA contribution, what is her savings ratio?

To determine Holly's savings ratio, we need to calculate her total savings contributions and then express that as a percentage of her total income.

Holly's total income is her salary of $80,000.

1. 401(k) Contribution: Holly contributes 10% of her salary to her 401(k). This amounts to: [ 0.10 \times 80,000 = 8,000 ]

2. Employer's Profit Share Plan Contribution: Her employer contributes an additional 5% of her salary to a profit-sharing plan. This contribution is calculated as follows: [ 0.05 \times 80,000 = 4,000 ]

3. IRA Contribution: Holly adds a $2,500 contribution to her IRA.

Next, we sum these contributions to find her total savings: [ 8,000 \text{ (401(k))} + 4,000 \text{ (profit share)} + 2,500 \text{ (IRA)} = 14,500 ]

Now, to find the savings ratio, we divide the total savings by her salary and then convert that into a percentage: \