Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2022? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement? Note: Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Minimum number of years of service Payment under annual defined benefit plan 8x years $ 245,000
Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2022? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement? Note: Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Minimum number of years of service Payment under annual defined benefit plan 8x years $ 245,000
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 46P
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RD.16.
I cannot figure out what the minimum years of service would be.. thanks!.
Transcribed Image Text:Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after
working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan
pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum
number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2022? Assuming she worked
the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement?
Note: Round your final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
8x years
Minimum number of years of service
Payment under annual defined benefit
plan
$ 245,000✔
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