Multiple Choice Question

Question

Laura’s salary is $60,530, and she makes 401K contributions. She saves 7% of her salary and her company will match 50% of her 7% contribution. How much does her company contribute to her 401K?
A.

$2,118.55
B.

$4,237.10
C.

$6,795.10
D.

$8,474.20

Answer 1

B. $4,237.10

Explanation:
7% of Laura's salary is $4,237.10. Since her company will match 50% of her 7% contribution, they will contribute $2,118.55.