Answer to Question #254790 in Financial Math for Kevin

Question

Jon's average salary over the last 3 years was $78,291. He worked at the company for 4 years so was 60% vested in his retirement plan. If his multiplier is 2.21% and his pension plan was based on the final 3 salary years, what is his annual pension?

Answer 1

Annual pension = Average salary×Multiplier×Yrs of service×Vested %

= $78291 x 2.21% x 4 x 60%

= $4,152.55 rounded 2 decimals

49 Ans is a $14,120.81

Explanation: $45,259 x 3.12% x 10 = $14,120.81