The Apex Company Has Just Hired Mr

question 6

Multiple Choice

The Apex Company has just hired Mr. Smith, who is age 25 and is expected to retire at age 60. Mr. Smith's current salary is $30,000 per year, but his wages are expected to increase by 5 percent annually over the next 35 years. Apex has a defined benefit pension plan in which workers receive
2 percent of their final year's wages for each year of employment. Assume a world of certainty. Further, assume that all payments occur at year-end. What is Mr. Smith's expected annual retirement benefit, rounded to the nearest thousands of dollars?

• A) $ 35,000
• B) $ 57,000
• C) $ 89,000
• D) $116,000
• E) $132,000

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Definitions:

Attachment

The emotional bond that forms between infant and caregiver, significantly influencing the child's social, emotional, and cognitive development.

Konrad Lorenz

An Austrian zoologist known for his foundational work in ethology, the study of animal behavior, particularly regarding the concept of imprinting.

Moro Reflex

An involuntary response seen in newborns, where they suddenly extend their arms and legs, arch their back, and then retract everything if they feel they are falling.

Withdrawal Reflex

An automatic response of the body moving away from a source of potential harm or discomfort.