Answer to Question #161483 in Financial Math for lulu

Question

Henry has worked for a factor for 31 years and will be retiring. He earned salaries over the past 4 years of $38433, $37776, $39125, and $38782. His employer calculates pension by finding the average of his last 4 years’ salaries and will give him 1.9% of that average for each year he worked. Calculate his pension. 

Answer 1

total salary = $38433 + $37776 + $39125 + $38782

= $ 154,116.

average salary = $\frac{total salary}{number of years}$

= $\frac{154,116}{4}$

= 38,529

pension = 1.9 % x 38,529

= $ 732.051‬

years worked = 4

total pension = $ 732.051 x 4

= $ 2,928.204