Question

Anton works at at First National Bank. His employer offers him a pension retirement plan which will be 1.45% of his average salary for the last five years of employment for every year worked. Anton is planning on retiring at the end of this year after 22 years of employment. His salaries for the last five years are $92K, $92.8K. $99K, $100.5K and $105K Calculate Anton's yearly pension.

Answer 1

His pension is given as 1.45% of his average salary for the last five years worked.

The average for the last five years is calculated as follows;

`\begin{gathered} M=\frac{\Sigma data}{Number\text{ of data}} \\ M=(92+92.8+99+100.5+105)/(5) \\ M=(489.3)/(5) \\ M=97.86 \\ \text{Yearly pension=}97.86*0.0145 \\ \text{Yearly pension=1.41897} \\ \text{Given in thousands, this becomes=\$1,418.97} \end{gathered}`

Therefore his yearly pension which is 1.45% of his average salary for the last 5 years ($97,860) is $1,418.97