Find the ratio of the pension income for retirement

Reference no: EM131001708

A DB plan provides for an annual pension of a certain percentage of the final 5 years average salary times the number of years of service upon retirement. Retirement is based on the 80 factor which means that an employee can retire at any time that the sum of age plus years of service is greater than or equal to 80. An employee age 55 who began work at age 25, is comparing their income for retirement now, to that which they would receive if they stay for another year. They can expect a 5% increase in salary for the following year, which is the same that they received in each of the last 4 years. Find the ratio of the pension income for retirement in 1 year to that for retirement now.

Reference no: EM131001708

Questions Cloud

What force must be exerted to compress the spring : One type of BB gun uses a spring-driven plunger to fire the pellet from its barrel, Calculate the force constant, in newtons per meter, of the plunger's spring if you must compress it 0.1 m to drive the 0.075kg pellet to a top speed of 18 m/s.

Find the ratio of the annual income under the dc plan : Find the ratio of the annual income under the DC plan to that of the DB plan, for an employee who remains in the plan until age 65.

What force constant is needed to produce a period : One type of cuckoo clock keeps time by having a mass bouncing on a spring, usually something cute like a cherub in a chair. What force constant is needed to produce a period of 0.763 s for a 0.0145 kg mass?

The willowbrook study produced research data : Both the Tuskegee study and the Willowbrook study produced research data that was beneficial to advancing medical science. Is the use of the data from these and other such experiments ethically defensible? Why or Why Not? In composing your response, ..

Find the ratio of the pension income for retirement : They can expect a 5% increase in salary for the following year, which is the same that they received in each of the last 4 years. Find the ratio of the pension income for retirement in 1 year to that for retirement now.

Prepare the journal entries for blair : Determine the transaction price of the arrangement for Blair Biotech (b) Assuming that regulatory approval was granted on December 20, 2014, and that Blair received the payment from Pang on January 15, 2015, prepare the journal entries for Blair.

Explain two trade-offs between marketing decisions : Explain two trade-offs between marketing decisions and operational decisions in a typical Wal-Mart store.

Each written paper requires in-depth : Instructions: Each written paper requires in-depth and detailed responses to the assignment question(s). The written papers need to reference the text materials in the content of the paper as well as the Reference Page. You must ensure you reference ..

Determine ms. french''s optimal strategy : Ms. French, a bank robber, robs banks by entering the bank at night when the bank is empty and then entering the bank vault. She is considering robbing three different banks. She will only rob bank 2 if she successfully robs bank 1, and she will only..

User Account

All Pages