Question

Anne's employer matches 25% of her 401(k) contributions - up to $2000.

Anne's salary is $40,000, and last year she contributed $7000 to her 401(k)
plan. What was her employer's contribution to the 401(k)?
O A. $2000
O B. $5000
O c. $7000
O D. $1750

Answer 1

1750

Step-by-step explanation:

A.P.E.X

Answer 2

The correct answer is D. US$ 1,750.

Step-by-step explanation:

The data we have is the following:

Anne's employer matches 25% of her contributions up to US$ 2,000

She contributed to her 401(k) plan with US$ 7,000 last year

Therefore, her employer contribution is calculated this way:

Employer contribution = Anne's contribution * 0.25 (up to US$ 2,000)

Employer contribution = 7,000 * 0.25

Employer contribution = US$ 1,750 (below the limit of US$ 2,000

Anne's employer contribution last year to her 401(k) was US$ 1,750