Question 16 A retirement plan offers a career average retirement benefit where a member will receive, upon retirement at age 60, an annual pension of 2.5% per year of service of the average annual salary received throughout the member's years of service. Chad joins the plan on May 1, 2012, with an initial salary of 40,000 per year. His salary will increase by 3.5% each subsequent May 1. Chad will retire on April 30, 2047. Calculate the annual pension that Chad would receive at retirement.
Question 16 A retirement plan offers a career average retirement benefit where a member will receive, upon retirement at age 60, an annual pension of 2.5% per year of service of the average annual salary received throughout the member's years of service. Chad joins the plan on May 1, 2012, with an initial salary of 40,000 per year. His salary will increase by 3.5% each subsequent May 1. Chad will retire on April 30, 2047. Calculate the annual pension that Chad would receive at retirement.
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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