Retire Average Salary => Now $50,000 In 2 years 51,005 The Payment Will Be 50,000 x .05 x 20 = $50,000 51,005 x .05 x 22 = $56,105 In 5 years 52,551 52,551 x .05 x 25 = $65,688 In 8 years 54,143 54,143 x .05 x 28 = $78,800 In 10 years 55,231 55,231 x .05 x 30 = $82,847 + cel Using a Spreadsheet to Calculate Pension Ben- efit 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 consider- ing retirement some time in the next 10 years. Your employer uses a final pay formula by which you receive an annual bene- fit 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 annual salary during the last three years of service listed below. (LG 18-2) The Payment Will Be 50,000 x .04 x 20 = $40,000 51,005 x .04 x 22 = $44,884 Retire Average Salary => Now $50,000 In 2 years 51,005 In 5 years 52,551 52,551 x .04 x 25 = $52,551 In 8 years 54,143 54,143 x .04 x 28 = $60,640 In 10 years 55,231 55,231 x .04 x 30 = $66,277