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To determine the company's contribution to an employee's retirement plan based on their salary and investment rate, we need to follow these steps:
1. Calculate the Employee's Investment Amount:
The employee invests 5% of their pre-tax salary into the retirement plan. The employee's salary is [tex]$50,000. \[ \text{Employee's investment} = 50,000 \times 0.05 = 2,500 \] 2. Calculate the Company's Contribution: The company matches 25% of the employee's investment amount. To find this, we take 25% of the $[/tex]2,500 that the employee invests.
[tex]\[ \text{Company's contribution} = 2,500 \times 0.25 = 625 \][/tex]
So, the company's contribution to the retirement plan is [tex]$625. Thus, the correct answer is: C. \$[/tex]625
1. Calculate the Employee's Investment Amount:
The employee invests 5% of their pre-tax salary into the retirement plan. The employee's salary is [tex]$50,000. \[ \text{Employee's investment} = 50,000 \times 0.05 = 2,500 \] 2. Calculate the Company's Contribution: The company matches 25% of the employee's investment amount. To find this, we take 25% of the $[/tex]2,500 that the employee invests.
[tex]\[ \text{Company's contribution} = 2,500 \times 0.25 = 625 \][/tex]
So, the company's contribution to the retirement plan is [tex]$625. Thus, the correct answer is: C. \$[/tex]625
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