Question

Andy works at a company with a defined contribution pension plan which contributes an amount equal to 7 percent of his salary to his account while he contributes nothing. The vesting period is 5 years. He has worked there full time for 2 years at an average pay of $30,000 and the account manager has earned 7 percent per year on the pension amount. If he leaves now to take a better job, how much will remain in his pension account?

Answer 1

Answer: $76600 will be left in his pension account.

Explanation: from the above let us find the total amount of pension earned for a month

(7/100) * $30000 = $2100

For 1 year the pension will be $2100 × 12 months = $25200

For 2 years = $25200 * 2 = $50400

For 3 years = $25200 * 3 = $76600

If he leaves after two years $76600 will be left in his pension account.

Answer 2

ANSWER IS D . NOTHING