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 the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

A) $95,000
B) $60,500
C) $49,875
D) $28,500
E) cannot determine