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
