Question

Lillian has a defined benefit plan that promises an annual retirement benefit based on 2 percent of her final 3-year average annual salary for each year of service. at retirement lillian has 15 years of service and an average salary over the last 3 years of $65,000. what will her annual benefit be?

Answer 1

2% of $65000 = $1300 x 15 = $19,500 per year (which sucks).

Hope that helps.

Answer 2

Lillian's annual beenefit will be $19,500.

Step-by-step explanation:

The statement says that Lillian will receive an annual benefit pf 2 percent of her final 3-year average annual salary for each year of service. Considering that she has an average salary over the last three years of $65,000, to determine her annual benefit, you have to calculate the 2% of $65,000 and then multiply that for 15 that is the number of years of service:

$65,000*2%= $1,300

$1,300*15= $19,500