Lillian has a defined benefit plan that promises an annual retirement benefit based on 2% of her final 3-year average annual salary for each year of service. At retirement, Lillian has 15 years of service and had an average salary of $80,000 over the last 3 years. What is the amount of her annual benefit?
A) $65,000
B) $50,500
C) $35,400
D) $24,000
E) $0

Question

Quizplus · Accepted Answer

The annual benefit is calculated as 2% of the average salary ($80,000) times the number of years of service (15). So, the calculation is 0.02 * $80,000 * 15 = $24,000.

Lillian Has a Defined Benefit Plan That Promises an Annual