Question
Maria has been working with eta incorporiatined for the past 5 years. each year she has contributed 15% of her salary towards the company's 401k
Maria has been working with eta incorporiatined for the past 5 years. each year she has contributed 15% of her salary towards the company's 401k plan. Beta "matches" employee contributions at 50 cents for every dollar that the employee contributes. Maria's salary for each year is as follows: 38,000;39,000; 43,000; 48,000; 50,000. Now, as she begins her sixth year of employment with Beta, she has been approached about another opportunity with Alpha Company which is offering her a starting salary of $60,000. She is unsure how much of her 401k balance is "vested". The company has a 6 year graded vesting schedule. Ignoring earnings on the 401k amounts-
a. compute the total balance in Maria's 401k account as of the start of year 6;
b. Compute the amount (if any) of that balance for which Maria is vested.
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