Homework answers / question archive / An employer uses a final pay formula to determine retirement payouts to its employees

An employer uses a final pay formula to determine retirement payouts to its employees

Finance

Share With

An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 5 percent of the average salary over the employees' last three years of service times the total years employed. Calculate the annual benefit under the following scenarios. Years Worked 23 26 28 Average Salary during the Last Three Years of Service $60,000 67,000 70,000 Years Worked Annual Benefit 23 26 28