Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Styles Using a spreadsheet to calculate pension benefit Payments: Your employer uses a career average formula to determine retirement payments to its employees. You have

image text in transcribed

Styles Using a spreadsheet to calculate pension benefit Payments: Your employer uses a career average formula to determine retirement payments to its employees. You have 20 years of service at the company and are considering retirement some time in the next 10 years. Your average salary over the 20 years has been $50,000 and you expect this to increase at a rate of 1 percent per year. Your employer uses a career average formula by which you receive an annual benefit payment of 5 percent of your career average salary times the number of years of service. Calculate the annual benefit if you retire now, in 2 years, Syears, 8 years and 10 years. (LG18-2) Avg. Salary The payment will be Now In 2 years In 5 years In 8years In 10 years 50,000.00 50,000*.005*20-50,000 $ 51,005.00 51,005*0.05*22-56,105 $ 52,551.00 52,551 0.05*25-65,688 S 54,143.00 54,143*0.05*28-78,800 $ 55,231.00 55231 0.05*30-82,847 Styles Using a spreadsheet to calculate pension benefit Payments: Your employer uses a career average formula to determine retirement payments to its employees. You have 20 years of service at the company and are considering retirement some time in the next 10 years. Your average salary over the 20 years has been $50,000 and you expect this to increase at a rate of 1 percent per year. Your employer uses a career average formula by which you receive an annual benefit payment of 5 percent of your career average salary times the number of years of service. Calculate the annual benefit if you retire now, in 2 years, Syears, 8 years and 10 years. (LG18-2) Avg. Salary The payment will be Now In 2 years In 5 years In 8years In 10 years 50,000.00 50,000*.005*20-50,000 $ 51,005.00 51,005*0.05*22-56,105 $ 52,551.00 52,551 0.05*25-65,688 S 54,143.00 54,143*0.05*28-78,800 $ 55,231.00 55231 0.05*30-82,847

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Public Finance

Authors: Toshihiro Ihori

1st Edition

9811023883, 978-9811023880

More Books

Students also viewed these Finance questions

Question

The correlation between height and IQ is +.13 in a sample of 35.

Answered: 1 week ago