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 Topic: monthly pension
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 Monthly Pension 2018-05-28 From Kenneth:Hello: I have a question regarding how the units cancel in the following: A company uses the following calculation to determine the monthly payment for its employees as they retire: 1.1% * average 5 years highest salary * years of service If an employee worked 33 years and his average 5 year salary is \$30,705.17, what is his monthly payment? I used the following to determine his monthly payment, but I am not sure how the units cancel especially the years. 1.1% * \$30,705.17 * 33 years divided by 12 months/year I determined his payment as \$928.83 per month, but the year units do not cancel unless the 1.1% is per year. Is the correct calculation 1.1%/year * \$30,705.17 * 33 years divided by 12 months/year so that the units cancel properly? The \$\\$30,705.17\$ is an average for 5 years of working. It is not \$30,705.17 per year. I thank you for your assistance.Answered by Penny Nom.

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