Question

DPS employees get a pension of 2% of their last 4-year salaries averaged together. Find the pension for an employee who's last 4 salaries were $78,000, $83,000, $84,000, and $87,000 and retired after 35 years.

A) $33,432
B) $58,100
C) $42,000
D) $30,710

Answer 1

To find the pension for a DPS employee, calculate the average of the last 4 salaries and then multiply this by 2% for each year of service. With an average salary of $83,000 and 35 years of service, the pension amounts to $58,100.

Step-by-step explanation:

The question provided is about calculating the pension for a DPS employee based on the average of their last 4-year salaries and the total years of service. First, we need to find the average of the last 4 salaries, which are $78,000, $83,000, $84,000, and $87,000. The average is calculated as follows: ($78,000 + $83,000 + $84,000 + $87,000) / 4 = $83,000.

Since the pension is 2% of the average salary for each year of service, and the employee has served for 35 years, the pension would be calculated as 0.02 * $83,000 * 35 = $58,100. Hence, the correct answer is B) $58,100.