Georgeanne Has Been Employed by SEC Corp

question 70

Essay

Georgeanne has been employed by SEC Corp. for the last 2½ years. Georgeanne participates in SEC's 401(k) plan. During her employment, Georgeanne has contributed $6,000 to her 401(k) account. SEC has contributed $3,000 to Georgeanne's 401(k) account (it matched 50 cents of every dollar contributed). SEC uses a three-year cliff vesting schedule. If Georgeanne were to quit her job with SEC, what would be her vested benefit in her 401(k) account (assume the account balance is $9,000)?

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Definitions:

Cost-plus Pricing

An approach to pricing in which a sale price is established by adding a specific extra amount to the product's per-unit cost.

Target Profit Pricing

Setting a product price based on a predetermined profit objective, rather than market or competitive conditions.

Return-on-investment (ROI)

A financial metric utilized to evaluate the efficiency of an investment or compare the efficiency of several different investments.

Business-to-business Markets

Markets focused on selling products or services from one business to another rather than to individual consumers.