11
practice testMultiple Choice

Practice Test

Question 11 • Mathematics for Data and Financial Literacy

An employee with a salary of $⁢50,000 contributes 6% 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?

Answer
A
1 dollars comma 875
B
1 dollars comma 500
C
2 dollars comma 000
D
2 dollars comma 250

Explanation

The employer matches 75% of the employee’s contribution, but only up to 5% of the salary. Five percent of $50,000 is $2,500, and 75% of $2,500 is $1,875. The employer will contribute $1,875 annually, choice C.

AI-written and checked against the verified answer.

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