Problem 3: Using a Spreadsheet to Calculate Pension Benefit Payments

Your employer uses a final pay 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 employer uses a final pay formula by which you receive an annual benefit payment of 4 percent of your employer uses a final pay formula by which you receive an annual benefit payment of 4 percent of your average salary over the last three years of service times the number of years employed. Calculate the annual benefit if you retire now, in 2 years, 5 years, 8 years, and 10 years using the estimated salary during the last three years of service listed below.

		Average	Years of	Benefit		=>	Annual
Retire		Salary	Service	Percent			Payment
now		$50,000	ENTER	VALUE		=	FORMULA
in 2 years		$51,005				=
in 5 years		$52,551				=
in 8 years		$54,143				=
in 10 years		$55,231				=