Question 2 • Mathematics for Data and Financial Literacy
Arielle earns $75,000 annually. Her company offers a 401(k) plan with a 75% match on her contributions up to 6% of her salary. The vesting schedule is cliff vesting over 4 years. If Arielle contributes 6% of her salary, how much will the employer contribute annually, and how much will be vested after 2 years?
Answer
A
3 dollars comma 375 employer contribution, 0 dollars vested after 2 years
B
3 dollars comma 375 employer contribution, 3 dollars comma 375 vested after 2 years
C
4 dollars comma 500 employer contribution, 0 dollars vested after 2 years
D
4 dollars comma 500 employer contribution, 4 dollars comma 500 vested after 2 years