An employer uses a career average formula to determine retirement payments to its employees. The annual retirement

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An employer uses a career average formula to determine retirement payments to its employees. The annual retirement payout is 5 percent of an employee’s career average salary times the number of years of service. Calculate the annual benefit payment under the following scenarios.
YearsCareer Average
Worked       Salary
30 .......... $ 60,000
33 ..........    62,500
35 .........     64,000

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Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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