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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

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.

Years Worked Average Salary during the Last Three Years of Service
21 $ 58,000
24 65,000
26 68,000

Years Worked Annual Benefit

21

24

26

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