Henry Has a Defined Benefit Plan That Promises an Annual

Multiple Choice

Henry has a defined benefit plan that promises an annual retirement benefit based on 2% of his final 5-year average annual salary for each year of service. At retirement, Henry has 21 years of service and had an average salary of $95,000 over the last 5 years. His annual benefit will be:

A) $95,000.
B) $60,500.
C) $49,875.
D) $39,900.
E) $15,200.