Ester is employed by Montgomery Enterprises and will retire at the end of the current year after 22 years of service. Under the company's defined benefit plan, she can retire at 80% of the average of her three highest consecutive years' salary. Her average salary over these three years is $80,000. What is the maximum amount Ester can receive from Montgomery's pension plan?
A)$35,000
B)$64,000
C)$80,000
D)$100,000
E)$125,000

Question

Quizplus · Accepted Answer

Ester's retirement payout will be 80% of her average salary over the three highest consecutive years. We are told that her average salary for those three years is $80,000. Therefore, her retirement payout will be:

0.8 * $80,000 = $64,000

This is the maximum amount Ester can receive from Montgomery's pension plan, so the correct answer is (B).

Ester Is Employed by Montgomery Enterprises and Will Retire at the End