Question

At your new job you estimate that your average salary over your working years will be $95,000 per year. How many more years would you have to work to receive as much benefit from a flat benefit of $3,000 times years of service as you would receive from 3.75 percent of your average salary times years of service?

Answer 1

1.1875 or 1.19 times

Step-by-step explanation:

The calculation of the no of years is to be given below;

= 3.75 % of average salary × years of service = 3000 × years of service

So,

= 0.0375 × 95000 × years of service = 3000 × years of service

So, the years of service is

= 3562.5 ÷ 3000

= 1.1875 or 1.19 times