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Umnica [9.8K]
3 years ago
12

Herman Melville had worked at the University Medical Center for 20 years when he became permanently disabled while at work. He c

ould not conitnue to work. Herman was 55 years old and had planned to retire in 10 years at age 65. His final average salary is $76,908. The hospital's rate of benefits is 2%. What is his annual disability benefit?
Mathematics
1 answer:
lidiya [134]3 years ago
4 0

Answer:

Herman Melville's annual disability benefit is $46,114.8

Step-by-step explanation:

Given the data in the question;

Herman Melville is 55 years, worked for 20 years, planned to retire in the next 10 years i.e at the age of 65.

so since he planned to work for the next 10 years;

total duration of work will be; ( 20 + 10) years = 30 years

Average salary per year = $76,908

Total salary in 30 years will be; $76,908 × 30 = $2,307,240

Hospital rate benefits = 2%

So, total annual disability benefit will be;

⇒ 2% of Total salary in 30 years

⇒ 2/100 × $2,307,240

= $46,114.8

Therefore, Herman Melville's annual disability benefit is $46,114.8

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