Math question.. don't get it, help!

Question

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)?
A. $1250

B. $2000

C. $5000

D. $2400

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.