Question

Lillian has a defined benefit plan that promises an annual retirement benefit based on 2% of her final 3-year average annual salary for each year of service. At retirement, Lillian has 15 years of service and had an average salary of $80,000 over the last 3 years. What is the amount of her annual benefit?

Answer 1

Answer:

the amount of her annual benefit is $24,000

Step-by-step explanation:

The computation of the amount of her annual benefit is as follows:

= Given percentage × average salary × number of years of service

= 2% × $80,000 × 15 years

= $24,000

Hence, the amount of her annual benefit is $24,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered