The retirement plan for Pennsylvania state employees is based on the following formula: "2.5% of average final compensation multiplied by years of credited service" (Source: Pennsylvania State Employees Retirement System, 2001). Let p represent annual retirement pension and y denote the years of service. For someone with average final compensation of $70,000, write the linear equation that gives p in terms of y.
C)

Question

The retirement plan for Pennsylvania state employees is based on the following formula: "2.5% of average final compensation multiplied by years of credited service" (Source: Pennsylvania State Employees Retirement System, 2001). Let p represent annual retirement pension and y denote the years of service. For someone with average final compensation of $70,000, write the linear equation that gives p in terms of y. ​
C) ​

Quizplus · Accepted Answer

Let x represent the average final compensation.

Then, based on the given formula, we have:

p = 0.025 * x * y

Substituting x = $70,000, we get:

p = 0.025 * $70,000 * y

p = $1,750 * y

This is a linear equation in the form y = mx, where m = $1,750.

Therefore, the correct answer is B, which is the equation:

p = $1,750y.

The Retirement Plan for Pennsylvania State Employees Is Based on the Following