Henry Has a Defined Benefit Plan That Promises an Annual

question 32

Multiple Choice

Henry has a defined benefit plan that promises an annual retirement benefit based on 2.5 percent of his final 5-year average annual salary for each year of service.At retirement,Henry has 21 years of service and had an average salary of $95,000 over the last 5 years.His annual benefit will be _____.

• A)$95,000
• B)$60,500
• C)$49,875
• D)$28,500
• E)$15,200

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Definitions:

Georgia

A country located at the crossroads of Eastern Europe and Western Asia, known for its rich history and diverse culture.

Oranges

A type of citrus fruit known for its round shape, orange color, and juicy, sweet flesh, commonly consumed fresh or juiced.

Peaches

Peaches refer to a juicy, soft fruit with a fuzzy skin, or the tree that bears this fruit.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.