Answer:
$15,572.88
Step-by-step explanation:
To calculate Killian's annual pension benefit, we need to follow the formula provided:
Annual Pension Benefit = Years of Service × 2.25% multiplier × Average of last five annual salaries
Given:
First, calculate the average of his last five annual salaries:
[tex]\textsf{Average salary} = \dfrac{\$38600 + \$39990 + \$41000 + \$41500 + \$55200}{5}\\\\\textsf{Average salary} = \dfrac{\$216290}{5}\\\\\textsf{Average salary} =\$43258[/tex]
Now, substitute this average salary along with the years of service (16) into the formula, and calculate the pension benefit:
[tex]\textsf{Annual pension benefit} = 16 \times 2.25\% \times \$43258 \\\\\textsf{Annual pension benefit} = 16 \times 0.0225 \times \$43258 \\\\\textsf{Annual pension benefit} = 0.36 \times \$43258 \\\\\textsf{Annual pension benefit} = \$15572.88[/tex]
So, Killian's annual pension benefit would be $15,572.88.
Answer:
$15572.88
Step-by-step explanation:
To calculate Killian's annual pension benefit, we need to follow the given formula:
Annual pension benefit = Years of service × 2.25% multiplier × Average of last five annual salaries
Given:
Years of service (Y) = 16 years
Multiplier = 2.25%
Last five annual salaries: 38,600, 39,990, 41,000, 41,500, and 55,200
First, let's calculate the average of the last five annual salaries:
[tex] \begin{aligned} \sf \textsf{Average salary} & = \frac{\$38,600 + \$39,990 + \$41,000 + \$41,500 + \$55,200}{5} \\\\ & = \dfrac{\$216,290}{5} \\\\ & = \$43,258 \end{aligned}[/tex]
Now, let's calculate Killian's annual pension benefit:
[tex]\begin{aligned}\sf \textsf{Annual pension benefit} &= 16 \times 2.25\% \textsf{ of } \$43,258 \\\\ & = 16 \times \dfrac{2.25}{100} \times \$43,258 \\\\ & = 16 \times 0.0225 \times \$43,258 \\\\ & = 0.36 \times \$43,258 \\\\ & = \$15572.88\end{aligned}[/tex]
So, Killian's annual pension benefit would be approximately $15572.88.
