At Your New Job You Estimate That Your Average Salary

question 45

Multiple Choice

At your new job you estimate that your average salary over your working years will be $95,000 per year. How many more years would you have to work to receive as much benefit from a flat benefit of $3,000 times years of service as you would receive from 3.75 percent of your average salary times years of service?

• A)1.33 times as many years
• B)0.75 times as many years
• C)1.19 times as many years
• D)2.40 times as many years
• E)1.50 times as many years

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Definitions:

Central Bank

An institution that manages a country's currency, money supply, and interest rates, usually with the aim of managing inflation and ensuring financial stability.

Federal Reserve Act

The act of Congress that created the Federal Reserve System in 1913, establishing the central banking system of the United States.

Maximum Employment

An economic situation in which all available labor resources are being used in the most efficient way possible.

Stable Prices

A situation in the economy where prices of goods and services do not fluctuate significantly in the short term, contributing to economic stability.