Yusef has a defined benefit retirement plan with his company. He has worked for the company for 35 years, but he is ready to retire. His average ending salary is $100,000. His company uses a factor of 0.02 for determining the annual benefits of the retirement plan. How much of an annual retirement benefit should Yusef expect to receive from his company when he retires? A. $20,000/year B. $33,333/year C. $70,000/year D. $120,000/year

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
Problem 39P
icon
Related questions
Question

General Accounting

Yusef has a defined benefit retirement plan with
his company. He has worked for the company for
35 years, but he is ready to retire. His average
ending salary is $100,000. His company uses a
factor of 0.02 for determining the annual benefits
of the retirement plan. How much of an annual
retirement benefit should Yusef expect to receive
from his company when he retires?
A. $20,000/year
B. $33,333/year
C. $70,000/year
D. $120,000/year
Transcribed Image Text:Yusef has a defined benefit retirement plan with his company. He has worked for the company for 35 years, but he is ready to retire. His average ending salary is $100,000. His company uses a factor of 0.02 for determining the annual benefits of the retirement plan. How much of an annual retirement benefit should Yusef expect to receive from his company when he retires? A. $20,000/year B. $33,333/year C. $70,000/year D. $120,000/year
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
Accounting
ISBN:
9780357391129
Author:
WHITTENBURG
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage