Dean Has Earned $70,000 Annually for the Past 4½ Years

Dean has earned $70,000 annually for the past 4½ years working as an architect for MWC. Under MWC's defined benefit plan (which uses a 5-year cliff vesting schedule) employees earn a benefit equal to 3.5% of the average of their three highest annual salaries for every full year of service with MWC. What is Dean's vested benefit (or annual benefit he has earned so far) ?

A) $12,250.
B) $42,000.
C) $7,350.
D) $0.

Correct Answer:

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