narlie belongs to a det ach year of service, ca cars of service and bes andard reduction of 4 eif he chooses to retir
narlie belongs to a det ach year of service, ca cars of service and bes andard reduction of 4 eif he chooses to retir
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 45P
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Transcribed Image Text:Charlie belongs to a defined benefit pension plan that offers a pension of 2% of best earnings for
each year of service, commencing at age 65. However, Charlie would like to retire at age 55, with 20
years of service and best average earnings of $68,000. His plan does allow early retirement, with a
standard reduction of 4% for each year of early retirement. What will Charlie's pension entitlement
be if he chooses to retire at age 55?
12
O a) $16,320
O b) $24,480
O c) $26,112
O d) $27,200
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