Question

Liz works at Food For Thought magazine. Her employer offers her a pension. Liz's

employer uses a formula to calculate the pension. Retiring employees receive 2.1%
of their average salary over the last four years of employment for every year worked.
Liz is planning on retiring at the end of this year after 20 years of employment. Her
salaries for the last four years are $66,000; $66,000; $73,000; and $75,000. Calculate
Liz's annual pension.

Answer 1

Liz's annual pension is $1470

Explanation:

Salaries for the last four years are $66,000; $66,000; $73,000; and $75,000

Finding the average salary in the four years will be;

Sum $66,000 + $66,000 + $73,000 + $75,000 =$280,000

Number of years =4

Average= $70,000

Applying 2.1 % pension

$70,000 * 2.1/100 =$1470 annual pension