Dean Has Earned $70,000 Annually for the Past Five Years

question 55

Multiple Choice

Dean has earned $70,000 annually for the past five years working as an architect for WCC Inc.Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 3.5 percent of the average of their three highest annual salaries for every full year of service with WCC.Dean has worked for five full years for WCC and his vesting percentage is 60 percent.What is Dean's vested benefit (or annual retirement benefit he has earned so far) ?

• A)$12,250.
• B)$42,000.
• C)$7,350.
• D)$0.

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Definitions:

Accounts Payable Turnover Ratio

A financial metric that measures how quickly a business pays its suppliers; calculated as cost of goods sold divided by average accounts payable.

Vendors

Entities or individuals that supply goods or services to another company, often playing a crucial role in the supply chain.

Timely Manner

Completing or achieving something within the expected or allocated time.

Compounded Semiannually

An interest calculation method where interest is added to the principal amount twice a year, leading to interest on interest by the period's end.