If Jake earns $29,000, what are his contributory earnings calculated based on the YMPE and YBE?

Steps to Solve

1. Identify YMPE and YBE Values

We need the values for the Yearly Maximum Pensionable Earnings (YMPE) and the Yearly Basic Exemption (YBE). Let's denote them as:

• YMPE: This is the maximum amount of earnings that is used to calculate pension contributions.
• YBE: This is the amount that is exempt from contributing to the pension.

Assuming the values are given (or provided in the problem), denote them as $YMPE$ and $YBE$.

2. Calculate Contributory Earnings

To find Jake's contributory earnings, we first determine how much of his total earnings exceed the YBE. This can be calculated using the following equation:

$$ \text{Contributory Earnings} = \max(0, \text{Total Earnings} - YBE) $$

Substituting Jake's earnings into the equation:

$$ \text{Contributory Earnings} = \max(0, 29000 - YBE) $$

3. Consider Maximum Limit with YMPE

Next, we check if Jake's contributory earnings exceed the YMPE. If it does, we should limit it to the YMPE:

$$ \text{Adjusted Contributory Earnings} = \min(\text{Contributory Earnings}, YMPE) $$

4. Final Calculation

Now substitute the values for YBE and YMPE (assumed to be provided) to complete the calculation for Jake's contributory earnings:

• If $YBE$ = some value (e.g., $3500$)
• If $YMPE$ = some value (e.g., $58000$), we calculate the contributory earnings and adjust them as necessary.

For final values, calculate:

$$ \text{Adjusted Contributory Earnings} = \min(\max(0, 29000 - YBE), YMPE) $$