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.