Question

Kalila Winston worked for a software company for 26 years. She became permanently disabled and could no longer keep her job. She was 52 years old and had planned to work until she was 62. Her final salary was $43,000. Her rate of benefits was 2%. What is Kalila's monthly disability benefit?

Answer 1

The monthly disability benefit is $2580

Explanation:

Given

`Final\ Salary\ (P) = \$43000`

`Age = 52`

`Benefit\ Rate (R) = 2\%`

Worked = 26 years

Expected = 62 years

Required

Determine the monthly disability benefit

First, we need to determine the years (T) left for her to work;

`T = Expected - Worked`

`T = 62 - 26`

`T = 36`

Next, is to calculate the yearly disability benefit as follows;

`Benefit = PRT`

Substitute 36 for T, 2% for R and 43,000 for P

`Benefit = 43000 * 2\% * 36`

Convert percentage to decimal

`Benefit = 43000 * 0.02 * 36`

`Benefit = 30960`

There are 12 months in a year;

So; Monthly Benefit is as follows;

`Monthly = (30960)/(12)`

`Monthly = \$2580`

Hence, the monthly disability benefit is $2580