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The Merrick Oaks School District offers

their employees the following annual
pension benefit.
c) Martha has been a principal in the
district for the last 18 years. The
average of her last three annual salaries
is $100,000. Determine Martha's
monthly pension if she retires after 18
years.

User Sweak
by
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1 Answer

2 votes

Answer:

To determine Martha's monthly pension, we need to use the formula provided by the Merrick Oaks School District for calculating the annual pension benefit:

Annual Pension Benefit = (Years of Service x Average of Last Three Annual Salaries) / 55

where 55 is the "pension factor" used by the district.

Using this formula, we can calculate Martha's annual pension benefit as follows:

Annual Pension Benefit = (18 x $100,000) / 55

Annual Pension Benefit = $32,727.27

Therefore, Martha's annual pension benefit is $32,727.27.

To calculate her monthly pension, we simply divide the annual pension benefit by 12:

Monthly Pension Benefit = $32,727.27 / 12

Monthly Pension Benefit ≈ $2,727.27

Therefore, Martha's monthly pension benefit would be approximately $2,727.27 if she retires after 18 years of service.

Explanation:

User Joakimja
by
8.5k points