Melanie's employer uses a formula to calculate the pension. A retiring employee will receive 3% of their average salary for the last five years of employment for every year worked. Melanie is planning on retiring at the end of this year after 20 years of employment. Melanie would receive this amount each year until her death. Her salaries for the last five years are $27,900, $29,200, $31,400, $34,000, and $34,900. Calculate her pension

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Adison Russo

6 May, 23:24

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Jocelynn Koch · Answer 1

Mean salary for last five years = $31,480

times 3 % = 944.40

She worked for 20 years so her pension is 944.40 * 20 = $18.888