Lillian Has a Defined Benefit Plan That Promises an Annual

Multiple Choice

Lillian has a defined benefit plan that promises an annual retirement benefit based on 2% of her final 3-year average annual salary for each year of service. At retirement, Lillian has 15 years of service and had an average salary of $80,000 over the last 3 years. What is the amount of her annual benefit?

A) $65,000
B) $50,500
C) $35,400
D) $24,000
E) $0