select the correct answer.\nlonnies employer will match up to 5% of his salary in contributions to his…

select the correct answer.\nlonnies employer will match up to 5% of his salary in contributions to his 401(k). his starting salary with the company is $2,500 a month, and the company allows him to contribute up to 12% of his salary to his 401(k). what is the minimum amount of his salary that lonnie should contribute each month to maximize his employers matching contribution?\n\na. $12.50\nb. $30.00\nc. $125.00\nd. $175.00\ne. $300.00

select the correct answer.\nlonnies employer will match up to 5% of his salary in contributions to his 401(k). his starting salary with the company is $2,500 a month, and the company allows him to contribute up to 12% of his salary to his 401(k). what is the minimum amount of his salary that lonnie should contribute each month to maximize his employers matching contribution?\n\na. $12.50\nb. $30.00\nc. $125.00\nd. $175.00\ne. $300.00

Answer

Explanation:

Step1: Identify matching - percentage

The employer matches up to 5% of his salary. To maximize the employer's match, Lonnie should contribute at least the amount that triggers the full 5% match.

Step2: Calculate contribution amount

The monthly salary is $2500. The amount for a 5% contribution is $2500\times0.05$. $2500\times0.05 = 125$

Answer:

C. $125.00