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Henry Has a Defined Benefit Plan That Promises an Annual

Question 32

Multiple Choice

Henry has a defined benefit plan that promises an annual retirement benefit based on 2.5 percent of his final 5-year average annual salary for each year of service.At retirement,Henry has 21 years of service and had an average salary of $95,000 over the last 5 years.His annual benefit will be _____.


A) $95,000
B) $60,500
C) $49,875
D) $28,500
E) $15,200

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