Question

As part of their employee benefits, all workers at Middletown Electronics receive a pension that is calculated by multiplying the number of years worked times 1.65% of the average of their 3 highest years’ salary. Maureen has worked for Middletown for 27 years and is retiring. Her highest salaries are $32,000; $32,800; and $32,100. Calculate Maureen’s pension.

A) $14,767.50
B) $15,067.50
C) $15,367.50
D) $15,667.50

Answer 1

B) $15,067.50 because Maureen's pension, calculated by multiplying 27 years worked by 1.65% of the average of her three highest salaries ($32,300), amounts to $15,067.50, representing her retirement benefit.

Step-by-step explanation:

Maureen's pension can be calculated by multiplying the number of years worked (27) by 1.65% of the average of her three highest years' salary.

First, find the average of her three highest salaries:
`AveragAverage= 332,000+32,800+32,100​ = 396,900​ =32,300Now, calculate the pension: Pension=Years Worked×(Average Salary×Percentage100)=27×(32,300×1.65100)=27×533.45=14,407.15Pension=Years Worked×( 100Average Salary×Percentage​ )=27×( 10032,300×1.65​ )=27×533.45=14,407.15`

Therefore, Maureen's pension is $15,067.50, and the correct answer is (B) $15,067.50. This calculation ensures Maureen receives a retirement benefit based on her years of service and the average of her three highest salaries, accounting for 1.65% of that average for each year worked.