Question

6. As part of their employee benefits, all workers at Light and Power Electric Company

receive a pension that is calculated by multiplying the number of years worked
times 1.875% of the average of their three highest years' salaries. Mia has
worked for LPEC for 30 years and is retiring. Her highest salaries were
$92,000, $94,800, and $96,250. Calculate Mia's pension.

Answer 1

$1769.06

Explanation:

The sum of Mia's three highest salaries is ...

$92,000 +94,800 +96,250 = $283,050

so the average is ...

$283,050/3 = $94,350

Her pension is then ...

0.01875 × $94,350 = $1769.06

_____

Additional comment

This is equivalent to the total of those salaries, divided by 160.

T/3 × 0.01875 = T × (0.01875/3) = T × 0.00625 = T/160

Sometimes, there are simpler ways to calculate things like this.