Henry has a defined benefit plan that promises an annual retirement benefit based on 2.5 percent of his final 5-year average annual salary for each year of service.At retirement,Henry has 21 years of service and had an average salary of $95,000 over the last 5 years.His annual benefit will be _____.

Question

Quizplus · Accepted Answer

To calculate the annual retirement benefit, we need to multiply Henry's final 5-year average annual salary by his years of service and by 2.5%:

$95,000 x 21 x 2.5% = $49,875.

Therefore, the answer is Choice C.

Henry Has a Defined Benefit Plan That Promises an Annual