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Nicholas works for Caress of Steel Inc. and earns $69,000 per year. He has membership in the defined benefit pension plan sponsored by his employer.

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Nicholas works for Caress of Steel Inc. and earns $69,000 per year. He has membership in the defined benefit pension plan sponsored by his employer. The plan is integrated with the Canada Pension Plan as follows: on earnings up to the yearly maximum pensionable earnings (YMPE), the contribution rate is 7.5%; on earnings in excess of the YMPE, the contribution rate is 8.75%. If the YMPE is $57,400, how much must Nicholas make in pension plan contributions? a) $4,305.00 b) $5,320.00 c) $5,022.50 d) $6,037.50

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