Question

Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $3,000 per year of service. Calculate your annual benefit payments for 23, 26, and 28 years of service.

Answer 1

Annual benefit (for 23 year) = $69,000

Annual benefit (for 26 year) = $78,000

Annual benefit (for 28 year) = $84,000

Step-by-step explanation:

Given:

Annual benefit = $3,000

Number of year = 23, 26, 28

Find:

Annual benefit (for 23 year)

Annual benefit (for 26 year)

Annual benefit (for 28 year)

Computation:

Annual benefit (for 23 year) = 23 x 3,000

Annual benefit (for 23 year) = $69,000

Annual benefit (for 26 year) = 26 x 3,000

Annual benefit (for 26 year) = $78,000

Annual benefit (for 28 year) = 28 x 3,000

Annual benefit (for 28 year) = $84,000