Maria's employer of 19 years offers a pension plan that is the product of the three -year average of her most current salaries,the number of years of service,and a 2% multiplier.Her last three salaries are: $63,500,$65,000,and $66,500.What is her annual pension benefit?

Question

Quizplus · Accepted Answer

First, we need to find the three-year average of her most current salaries. 
(63500+65000+66500)/3 = $65,000

Then, we use the formula:
Annual pension benefit = (Three-year average salary) x (Years of service) x (Multiplier)
Annual pension benefit = $65,000 x 19 x 0.02
Annual pension benefit = $24,700

Therefore, Maria's annual pension benefit is $24,700.

Maria's Employer of 19 Years Offers a Pension Plan That