Question

As a retiring employee, you'll receive 5.96% of your average salary from the last five years you worked with your company.

You plan to retire after 37 years with the company.

Your salaries for your last five years are:

$180,267
$210,325
$126,591
$77,184
$173,175
Calculate your annual retirement salary.

Answer 1

9,149.10

Explanation:

To get the average you take all the values and add them up then divide by 5.

767,542 divided by 5 = 153,508.40

Now to get the percentage take 5.96 and divide by 100 = 0.0596

With this you can multiple the average by the percent in decimal form.

153,508.40 * 0.0596 = 9,149.10