1.)Matching contributions are yours: A.)immediately B.)when they become vested C
ID: 2801883 • Letter: 1
Question
1.)Matching contributions are yours:
A.)immediately
B.)when they become vested
C.)when they become indexed
D.)when they become indemnified
2.)Here is historical data:
damages proportion
claimed of insureds
by insureds claiming damages
---------------- ---------------------
$0 50%
$1,000 25%
$5,000 15%
$10,000 10%
What is the expected value of these damage claims?
A.)$1,750
B.)$1,000
C.)$2,000
D.)$4,250
Explanation / Answer
1.
Matching contributions are defined benefit plan in which 50% paid by you and remaining 50% paid by you employers. So Matching contributions are yours when when they become vested.
Option (B) is correct answer.
2.
Expected value = ($0 × 50%) + ($1,000 × 25%) + ($5,000 × 15%) + ($10,000 × 10%)
= $0 + $250 + $750 + $1,000
= $2,000.
expected value of damage claims is $2,000.
Option (C) is correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.