Parker is a highly skilled sales person at Byberry which is

Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?

a. $200,000.

b. $185,000.

c. $160,000.

d. $120,000.

Solution

Average salary of last 3 years = (200000+150000+250000)/3= 200000 Pension benefit = 200000*30*2%= 120000 Option D is correct