Question

After 29 years Ms. Payson is getting ready to retire from teaching. As part of her employee benefits

her school will give her a pension that is based on the average of her three highest salaries while she
taught. Her three highest salaries were $54,900, $55,300 and $56,700. They will give her 2.1% of that
average for every year worked. Calculate Ms. Payson's annual pension, round to the nearest cent if
needed

Answer 1

`\boxed{\mathbf{\$33880.70}}`

Explanation:

1. Calculate the average salary

`\text{Average salary} = \frac{\text{Sum of salaries}}{\text{Number of salaries}} = (\$54900 + \$55300 + \$56700)/(3)\\\\= (\$166900)/(3) = \$55633.33`

2. Calculate the pension

`\text{Pension} = 29 * 0.021 * \$55633.33 = \mathbf{\$33880.70}\\\\\text{ Ms. Payson's annual pension will be $\boxed{\mathbf{\$33880.70}}$}`