Drake has worked for GT for the last 20 years and been a par

Drake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In the last ten years, his salary has increased significantly. Over the last ten years, his compensation was $300,000, $145,000, $200,000, $400,000, $225,000, $240,000, $233,000, $210,000, $150,000, and $290,000, respectively. In 2017, what is the most that he could receive as a pension payment?

a. $330,000.

b. $288,333.

c. $270,000.

d. $215,000.

Solution

Drake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In the last ten years, his salary has increased significantly.

ANS. A.$330,000.