Question

Eddie is a plant manager at North Salem Construction Company. He has been employed there for 20 years and will be retiring at the end of this year. His pension is calculated on the average of his last four years' salaries. In those years, he earned $82,000, $96,000, $105,000, snf $109,000. His employer will give him 1.2% of that average for each year he worked. Calculate Eddie's pension. *

Answer 1

Answer:

$23,520

Step-by-step explanation:

Given the question :

Eddie is a plant manager at North Salem Construction Company. He has been employed there for 20 years and will be retiring at the end of this year. His pension is calculated on the average of his last four years' salaries. In those years, he earned $82,000, $96,000, $105,000, snf $109,000. His employer will give him 1.2% of that average for each year he worked. Calculate Eddie's pension

Pension is calculated on the average of his last four years salary :

Salary for last four years :

82,000 + 96,000 + 105,000 + 109,000 = $392,000

Average salary over the last four years :

392,000 / 4 = $98,000

Number of years worked = 20 years

1.2% of his average salary over the last four years :

0.012 × $98,000 = $1,176

$1,176 × number of years worked

$1,176 × 20 = $23,520