Question $13$

EXHIBIT $13-1$ Defined Benefit Plans Minimum Vesting Schedules$*$

CAM, Inc provides a defined benefit plan to its employees. Under the plan, employees earn a

benefit equal to $1\mathrm{.}2$ percent for every year of service of their average salary for their three

highest years of compensation. CAM implements a seven$-$year graded vesting schedule as

part of the plan. If Hadley works for CAM for four years, earning annual salaries of $$42,490,$

$$46,220,$$$51,880,$ and $$56,260,$ and then leaves to work for another employer at the

beginning of her $5^{th}$ year, what annual benefit would she be entitled to receive $($her vested

benefit$)?$