kaysia participates in a SIMPLE plan provided by her employer. In 2011, she contributes 6% of her $40,000 salary, and her employer contributes 3% to the plan

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sorry... I never used this site before. It is a problem I am trying to solve

The question would be what amount of the contributions will be vested in her account at the end of 2011? I come up with 1,200
the choices are:
0
1200
2400
3600

thank you

The vesting is all the employees contribution, and up to three percent as a employers contribution

In this case, 40,000*(.06+.03)=3600

To calculate Kaysia's contribution to the SIMPLE plan, you need to multiply her salary by the percentage she contributes. Similarly, to calculate her employer's contribution, you need to multiply her salary by the percentage the employer contributes.

Step 1: Convert Kaysia's salary percentage to a decimal:
Kaysia contributes 6% of her $40,000 salary. To convert the percentage to a decimal, divide it by 100:
6% / 100 = 0.06

Step 2: Calculate Kaysia's contribution:
Multiply her salary by the contribution percentage:
$40,000 x 0.06 = $2,400

So, Kaysia contributes $2,400 to the SIMPLE plan.

Step 3: Convert the employer's contribution percentage to a decimal:
The employer contributes 3% of Kaysia's salary. Again, divide the percentage by 100:
3% / 100 = 0.03

Step 4: Calculate the employer's contribution:
Multiply Kaysia's salary by the employer's contribution percentage:
$40,000 x 0.03 = $1,200

Therefore, Kaysia's employer contributes $1,200 to the SIMPLE plan.