Satiya is retiring after working for Goldstone Inc. for 10 years. He belongs to a defined-benefit...

 

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Satiya is retiring after working for Goldstone Inc. for 10 years. He belongs to a defined-benefit pension plan that provides a benefit of 2% of final average earnings up to the final YMPE and 2.5% on final average earnings above the final YMPE for each year of service. The maximum pension benefit for the year is $2,880. If Jaison has projected his final average earnings to be $100,000 and the final average YMPE to be $56,000, what will his annual pension benefit be? Satiya is retiring after working for Goldstone Inc. for 10 years. He belongs to a defined-benefit pension plan that provides a benefit of 2% of final average earnings up to the final YMPE and 2.5% on final average earnings above the final YMPE for each year of service. The maximum pension benefit for the year is $2,880. If Jaison has projected his final average earnings to be $100,000 and the final average YMPE to be $56,000, what will his annual pension benefit be?

Answer rating: 100% (QA)

SOLUTION First we need to calculate the portion of Jaisons final average earnings that are above th... View the full answer