Question: Chapter 18 Problem 4: Using a Spreadsheet to Calculate Pension Benefit Payments (LG 18-2) Your employer uses a career average formula to determine retirement payments

Chapter 18 Problem 4: Using a Spreadsheet to Calculate Pension Benefit

Chapter 18 Problem 4: Using a Spreadsheet to Calculate Pension Benefit Payments (LG 18-2) Your employer uses a career average formula to determine retirement payments to its employees. You have 20 years of service at the company and are considering retirement sometime in the next 10 years. Your average salary over the 20 years has been $50,0000 and you expect this to increase at a rate of 1 percent per year. Your employer uses a career average formula by which you receive an annual benefit payment of 5 percent of your career average salary times the number of years of service. Calculate the annual benefit if you retire now, in 2 years, 5 years, 8 years, and 10 years. => Retire Average Salary FORMULA Annual Payment FORMULA now in 2 years in 5 years in 8 years in 10 years

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