Question

Michael works at at First National Zoo. His employer offers him a pension retirement plan which will be 1.35% of his average salary for the last five years of employment for every year worked. Michael is planning on retiring at the end of this year after 42 years of employment. His salaries for the last five years are $92K, $92.8K, $99K, $100.5K and $105K . Calculate Michael's yearly pension . What is Michael's average salary for the last five years he worked? What will be Michael's annual pension ?

Answer 1

First, let's calculate the average salary by adding them all together, and then dividing the sum by 5:

`(92000+92800+99000+100500+105000)/(5)=(489300)/(5)=97860`

We have that the average salary is $97,680.

Next, the annual pension is calculated by multiplying the average salary by 1.35% in decimal form:

`(97680)(1.35\%)=(97680)(0.0135)=1318.68`

finally, we have that Michael's annual pension is $1318.68