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Determine accrued retirement benefit granted to employees

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John works for a company that uses the fractional rule to determine the accrued retirement benefit granted to its employees. John retires at age 60 after working for the company for 20 years. The plan's normal retirement age is 65. John would have received a benefit of $40,000 at 65. How much will he receive when he retires at age 60?

Reference no: EM132884904

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