Luke worked for a company for 25 years before becoming disabled. He planned to retire at 65, but is currently 62. His final average salary was $60,000. If his plan offers a benefits rate of 2%, what is his monthly benefit? Annual Benefit Expected (Worked + Retirement - Age Present Age Rate of Benefits Final X Average Salary Years A. $2,500 B. $2,800 C. $3,600 D. $3,000
Luke worked for a company for 25 years before becoming disabled. He planned to retire at 65, but is currently 62. His final average salary was $60,000. If his plan offers a benefits rate of 2%, what is his monthly benefit? Annual Benefit Expected (Worked + Retirement - Age Present Age Rate of Benefits Final X Average Salary Years A. $2,500 B. $2,800 C. $3,600 D. $3,000
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
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Transcribed Image Text:Luke worked for a company for 25 years before
becoming disabled. He planned to retire at 65,
but is currently 62. His final average salary was
$60,000. If his plan offers a benefits rate of 2%,
what is his monthly benefit?
Expected
Worked Retirement
Age
Rate of
Benefits
Final
Average
Salary
Annual
Years
Present
%3D
Benefit
Age
A. $2,500
B. $2.800
C. $3,600
D. $3,000
2003 - 2022 International Academy of Science. All Rights Reserved.
Expert Solution
Step 1 Introducion
Annual Benefit: In a plan to which Employees do not participate and to which no Rollover Contributions are made, an annual benefit is paid in the form of a straight life annuity (no ancillary benefits). Annual Benefit indicates an annual retirement benefit paid as a straight life annuity.
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