$1800 is not the correct answer.

A Flexible Savings Account (FSA) plan allows you to put money into an account at the beginning of the calendar year that can be used for medical expenses. This amount is not pay your medical expenses out of your own pocket. On the other hand, if you put more money into your FSA than the medical expenses you incur, this extra money is lost to you. Your annual salary is $80,000 and your federal income tax rate is 30%. a. Assume that your medical expenses in a year are normally distributed with mean $2,000 and standard deviation $500. Build an @RISK model in which the output is the amount of money left to you after paying taxes, putting money in an FSA, and paying any extra medical expenses. Experiment with the amount of money put in the FSA, using a RISKSIMTABLE function. Specifically, let this amount vary from $1,000 to $3,000 in increments of $250, and determine which of these maximizes the expected amount of money left to you. (3) mean and standard deviation as in part a, but the distribution of medical expenses is now skewed to the right, which is probably more realistic. Using simulation, see whether you should now put more or less money in an FSA than in the symmetric case in part a