What is the minimum amount Aisha should contribute yearly to her 401(k) if her employer matches 5%?

To determine the minimum amount Aisha should contribute yearly to her 401(k) that aligns with her employer's matching strategy, it's essential to understand how employer matching works. In this case, her employer matches contributions up to 5%. This means that to maximize the benefit of the employer match, Aisha should at least contribute 5% of her salary to receive the full match.

The correct answer of $3,500 indicates that this amount is structured based on Aisha’s annual salary. If we take a hypothetical salary of $70,000, for example, contributing 5% would indeed mean Aisha contributes $3,500 annually. This contribution level ensures she meets the threshold necessary to access the complete employer match, optimizing her retirement savings.

Any lower contribution amounts listed in the options, like $1,500, $2,500, or $4,000, would either fall short of the matching percentage or exceed the contribution needed to receive the full match without optimizing her savings strategy relative to her employer’s offer. Therefore, by selecting $3,500, Aisha effectively secures the maximum benefit from her employer's matching contribution, which is a crucial aspect of maximizing retirement savings.