Question

(Planning for Retirement MC)

An HVAC technician is comparing pension plans for two different job offers.

First offer: $58,000 average annual wage, 1.6% per year of service, with a monthly pension payment of $1,546.67 after 20 years of service
Second offer: $64,900 average annual wage, 1.3% per year of service

The technician plans to work for the same amount of time at each company. What is the difference in monthly pension payments?

The first offer pays $150.40 more per month.
The second offer pays $150.40 more per month.
The first offer pays $140.50 more per month.
The second offer pays $140.50 more per month.

Answer 1

The first offer pays $140.50 more per month.