Congratulations,you Have Just Been Employed! You Now Have a Choice

Congratulations,you have just been employed! You now have a choice between a flat benefit at retirement equal to $4,000 times your years of service,or a career average formula of 3.50 percent of your average salary times your years of service. You expect to work 40 years. At what average salary would you be indifferent between the two alternatives?

A) $160,000
B) $145,444
C) $114,286
D) $101,104
E) $98,976

Correct Answer:

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