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All workers at Bulger Lumber Company receive a pension that is calculated by multiplying the number of years worked times 2.125% of the average of the 3 highest year's salaries. John has worked for BLC for 35 years and is retiring. His highest salaries were $88,000, $91,000, and $92,250. Calculate John's pension

Sagot :

$67247.39

Explanation

Step 1

find the average of the 3 highest years salaries

Let

[tex]\begin{gathered} \text{salary}_1=88000 \\ \text{salary}_2=91000 \\ \text{salary}_3=92250 \end{gathered}[/tex]

hence

[tex]\begin{gathered} \text{salary average=}\frac{salary_1+salary_2+salary_3}{3} \\ \text{salary average=}\frac{88000+91000+92250}{3} \\ \text{salary average=}\frac{271250}{3} \\ \text{salary average=90416.67} \end{gathered}[/tex]

Step 2

find the 2.125 % of salary average

[tex]2.125\text{ \% = }\frac{\text{2.125}}{100}=0.02125[/tex]

so, to find the 2.125 % of any number, multiply the number by 0.02125

Hence

[tex]21.25\text{ \% of 90416.67=0.019212125}\cdot90416.67=1921.35[/tex]

Step 3

find the pension

pension that is calculated by multiplying the number of years worked times 2.125% of the average of the 3 highest year's salaries.

Let

years John worked=35

replace

[tex]\begin{gathered} \text{Pension}=35\cdot1921.35 \\ \text{Pension}=67247 \end{gathered}[/tex]

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