An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 3 percent of the average salary over the employees’ last three years of service times the total years employed. Calculate the annual benefit under the following scenarios. (LG 18-2)

Years Worked Average Salary during the Last Three Years of Service 17 $40,000 20 47,000 22 50,000 AppendixLO1