NuEditions Book Company uses a final average salary formula to calculate an employee's pension benefits. The amount used in the calculations is the salary average of the final 3 years of employment. The retiree will receive an annual benefit that is equivalent to 1.75% of the final average for each year of employment. Mike and Rob are both retiring at the end of this year. Calculate their annual retirement pension given the following information:
Mike: Years of employment: 25;
Final three annual salaries: $84,780, $84,900, $85,000
Kristy: Years of employment: 27;
Final three annual salaries: $71,600, $73,400, $78,000