Question

7.Mrs. Brown has been working in a factory for 28 years. She is preparing to retire. Her pension is calculated onthe average of her last 3 years' salaries, when she earned $38,592; $37,590; and $37,010. Her employer willgive her 1.8% of that average for each year she worked. Calculate her pension.

Answer 1

First, calculate the average of the salaries from the last three years:

`(38,592+37,590+37,010)/(3)=37,730.67`

Next, calculate the percentage that Mrs. Brown will get, multiplying 1.8% times the amount of years that she worked:

`28*1.8=50.4`

Finally, calculate what is 50.4% of the average income equal to:

`(50.4)/(100)*37,730.67=19,016.256`

Therefore, the pension is equal to $19,016