This topic contains a solution. Click here to go to the answer

Author Question: Tom, a government employee, has a defined benefit pension.He has worked for his employer for 35 ... (Read 59 times)

formula1

  • Hero Member
  • *****
  • Posts: 666
Tom, a government employee, has a defined benefit pension.He has worked for his employer for 35 years before retiring at age 65.His final salary was 85,000.
 
  Calculate how much of his final preretirement income a standard defined benefit pension plan would replace.

Question 2

Refer to Table 2-7. What is Mickey's opportunity cost of making an umbrella?
 
  A) 1/5 of a hat B) 5 hats C) 10 hats D) 50 hats



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pami445

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

Using the formula given in the chapter, Tom's pension would equal:
0.02  35  85,000 = 59,500.
This would replace 59,500/85,000 = 0.70 or 70 percent of his preretirement income.
A-head: INVESTMENT ACCOUNTS
Concept: Retirement savings plans

Answer to Question 2

C




formula1

  • Member
  • Posts: 666
Reply 2 on: Jun 29, 2018
Wow, this really help


Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Excellent

 

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

For a complete list of videos, visit our video library