Asked by Daphne Scotese on Jul 21, 2024
Verified
Nina's employer offers a pension plan that is the product of the career average of her salaries while working there,the number of years of service,and a 1.75% multiplier.She calculates the average of her 17 years of salaries to be $54,000.What is her monthly pension?
Pension Plan
A retirement savings plan sponsored by an employer, providing a fixed payout to employees upon retirement.
Multiplier
A factor that quantifies the change in economic activity resulting from a change in spending, used in macroeconomic analysis to estimate the effect of investment, government spending, and other economic activities.
Career Average
Indicates the average achievements, earnings, or performance levels over the span of an individual's career.
- Comprehend the fundamental principles of retirement savings and pension schemes, encompassing the determination of benefits anchored in average salaries and tenure of service.
Verified Answer
TB
Taylor BandyJul 23, 2024
Final Answer :
$1,338.75;54,000 × 17 × 0.0175 = 16,065;16,065 ÷ 12 = 1,338.75
Learning Objectives
- Comprehend the fundamental principles of retirement savings and pension schemes, encompassing the determination of benefits anchored in average salaries and tenure of service.