Question

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

Answer 1

Answer:

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

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