8
QuizMultiple Choice

Retirement — Test

Question 8 • Financial Math

An employee has a salary of $⁢100,000 and contributes 6% of their salary to a 401(k) retirement plan. The employer matches 100% of the employee's contribution up to 4% of their salary. How much will the employer contribute annually?

Answer
A
6 dollars comma 000
B
5 dollars comma 000
C
4 dollars comma 000
D
3 dollars comma 000

Explanation

The employer matches the employee’s contribution dollar for dollar, but only up to 4% of the $100,000 salary. Since 4% of $100,000 is $4,000, the employer contributes $4,000 annually.

AI-written and checked against the verified answer.

Previous
Next