Question
An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 4 percent of the average salary over
An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 4 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 | $47,000 |
| 24 | 54,000 |
| 26 | 57,000 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
