MsLloyd, Who Is 25 and Expects to Retire at Age

question 9

Multiple Choice

Ms.Lloyd, who is 25 and expects to retire at age 60, has just been hired by the Chambers Corporation.Ms.Lloyd's current salary is $30,000 per year, but her wages are expected to increase by 5 percent annually over the next 35 years.Chambers 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 Ms.Lloyd'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:

Healthy

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Hypertension

A condition in which the blood pressure in the arteries is persistently elevated.

Manometer

A device used to measure the pressure of gases or liquids, often used in medical and laboratory settings.

Korotkoff Sounds

Audible sounds heard with a stethoscope during blood pressure measurement, indicating the resumption of blood flow.