Question

Allison works at a Bank. Her employer offers her a retirement pension plan which will be 1.75% of her average salary for the last five years of employment for every year worked. Allison is planning on retiring after working at the Credit Union for 32 years. Her salaries over the last five years are $70,000; $73,100; $75,200; $77,500; and $79,000. Calculate Allison's annual pension.​

Answer 1

9514 1404 393

Answer:

$41,977.60

Explanation:

Allison's average salary for the last 5 years is ...

(70 +73.1 +75.2 +77.5 +79)/5 = 74.96 . . . . thousand dollars

Then her annual pension is ...

1.75% × $74,960 × 32 = $41,997.60