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Upon retirement, company XYZ will pay 2.8% of final salary per year of service. You have...

  1. Upon retirement, company XYZ will pay 2.8% of final salary per year of service. You have worked at XYZ for 20 years. You starting salary was $100,000. Your ending salary is $175,000. How much will you receive as a pension?
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Answer #1

Pension amount = 2.8% of final salary for each year of service

Final salary = $175,000

Years of service = 20

Hence, pension amount = 175,000*2.8%*20

= $98,000

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