Emily's employer matches 25% of her 401 (k) contributions - up to $2000. Emily's salary is $40,000, and last year she contributed $5000 to her 401 (k) plan. What was her employer's contribution to the 401 (k) ?

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Mylie

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14 August, 17:39

Emily's employer matches 25% of her 401 (k) contributions - up to $2000. Emily's salary is $40,000, and last year she contributed $5000 to her 401 (k) plan. What was her employer's contribution to the 401 (k) ?

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Bria Bonilla · Answer 1

"last year she contributed $5000" "employer matches 25%" which is (25/100) * $5000 = $1250 "up to $2000" means that limit of employer's contribution is $2000. Is $1250 less than or equal to $2000? Yes, so employer contributed $1250 last year.