15
QuizMultiple Choice

Employer Retirement Plans — Quiz

Question 15 • Financial Math

An employee earns $⁢90,000 annually and contributes 8% of their salary to a 401(k) plan. The employer matches 50% of contributions up to 5% of the employee's salary. How much will the employer contribute to the employee's plan?

Answer
A
2 dollars comma 250
B
4 dollars comma 500
C
2 dollars comma 000
D
3 dollars comma 600

Explanation

The employer matches 50% of contributions, but only up to 5% of the employee’s $90,000 salary. Five percent of $90,000 is $4,500, and 50% of that is $2,250. Therefore, the employer contributes $2,250, choice B.

AI-written and checked against the verified answer.

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