Question

Melody works at Fancy Pet magazine. Her employer offers her a pension. Melody's employer uses a formula to calculate the pension.

Retiring employees receive 2.5% of their average salary over the last four (4) years of employment for every year worked. Melody is planning to retire at the end of the year after, 30 years of employment. Her salaries for the last four years are $56,000; $60,000; $73,000;

and $75,000. a) Calculate is Melody's Average 4 year salary show work

Answer 1

Hello!

a) Melody's average 4 year salary = (56,000 + 60,000 + 73,000 + 75,000) / 4

= 264,000 / 4

= 66,000

So, Melody's average 4 year salary is $66,000.

Explanation:

Melody has worked for 30 years at Fancy Pet magazine and is planning to retire at the end of the year. As per her employer's pension formula, she will receive 2.5% of her average salary over the last four (4) years of employment for every year worked.

To calculate Melody's average salary over the last four years, we first need to add up her salary from the last four years: 56,000 + 60,000 + 73,000 + 75,000 = 264,000. Then, we divide this sum by 4 to find the average: 264,000 / 4 = 66,000.

Therefore, Melody's average 4 year salary is $66,000. With this information, we can calculate the amount of pension she will receive based on her years of employment and the pension formula offered by her employer.