Question

Jason is planning on retiring after 25 years of employment. For the last three years he
has made $60,000; $56,000; and $58,000. His employer offers a defined benefit plan
in which the annual pension is calculated as the product of the final three-year
average salary, the number of years of service, and a 2.25% multiplier. What will
Jason's monthly pension be?
O $27,187.50
O $2,812.50
O $32,625
O $2,718.75

Answer 1

Jason's monthly pension is the product of the final three-year average salary is $32,625. Then the correct option is C.

What is a monthly pension?

Jason is planning on retiring after 25 years of employment.

For the last three years he has made $60,000; $56,000; and $58,000.

His employer offers a defined benefit plan in which the annual pension is calculated as the product of the final three-year average salary, the number of years of service, and a 2.25% multiplier.

Then Jason's monthly pension will be

[tex]\rm Monthly \ pension = \dfrac{(60,000+56,000+58,000)}{12} \times 2.25\\\\Monthly \ pension = 14500 \times 2.25\\\\Monthly \ pension = \$ \ 32,625[/tex]

More about the monthly pension link is given below.