Question
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 | ||
| 20 | $ | 46,000 | |
| 23 | 53,000 | ||
| 25 | 56,000 | ||
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
