A government agency pays their agents' retirement at 4% of final salary per year of service. Mr. Smith has worked for the agency for 17 years, with a beginning salary of $100,000 and an ending salary of $200,000. At retirement, how much should Mr. Smith expect to receive from the agency?

Question

Quizplus · Accepted Answer

Mr. Smith's final salary is $200,000. He has worked for the agency for 17 years. So, he should expect to receive 17 * 4% * $200,000 = $136,000 from the agency.

A Government Agency Pays Their Agents' Retirement at 4% of Final