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Max is retiring after 25 years of employment with the government. His employer sponsors a...

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Accounting

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Max is retiring after 25 years of employment with the government. His employer sponsors a 2% Defined-Benefit Pension Plan (DBPP) with the formula based on the average of his last 3 years of earnings. If Max's employment income has been the same at $80,000 for the last three years due to salary freezes, what would be his annual pension income at retirement? A $1,600 B $4,800 $80,000 D $40,000

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