Congratulations, you have just been employed! You now have a choice between a flat benefit atretirement equal to $4,000 times your years of service, or a career average formula of 3.50% of youraverage salary times your years of service. You expect to work 40 years. At what average salarywould you be indifferent between the two alternatives?O $160,000O $145,444O $114,286O $101,104O $88,889

Let's Denote the average salary as S and the years of service as T. The two retirement options are:

Answered: Congratulations, you have just been…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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