Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2022? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement? Note: Round your final answers to the nearest whole dollar amount. Minimum number of years of service years
Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2022? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement? Note: Round your final answers to the nearest whole dollar amount. Minimum number of years of service years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Haley has an annual salary of $1,000,000 in 2019, 2020, and
2021. She is thinking about retiring at the beginning of 2022
after working for XYZ Corporation and participating in XYZ
Corporation's defined benefit plan. If XYZ Corporation's
defined benefit plan pays employees 3 percent for every year
of service for the average of their three highest years of
compensation, what is the minimum number of years of
service that would maximize Haley's benefit if she were to
retire at the beginning of 2022? Assuming she worked the
minimum number of years to receive the maximum benefit,
what would her annual defined benefit plan payment be in
retirement?
Note: Round your final answers to the nearest whole dollar
amount.
Minimum number of years of service
Payment under annual defined benefit plan
years
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