An employee earns $⁢75,000 per year and contributes 5% of their salary to a 401(k) retirement plan. The employer matches 75% of the employee's contribution up to 5% of the employee's salary. How much will the employer contribute annually?

The employee contributes 5% of $75,000, which is $3,750. The employer matches 75% of that contribution: $3,750 × 0.75 = $2,812.50. Because the employee contributes the full 5% eligible for matching, the employer contributes $2,812.50 annually, choice C.

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