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Actuary

Real-Life Activities

Real-Life Math

Actuaries do a lot of work with pensions. It's up to them to make sure that when a customer retires at age 65, their company is going to have enough money to pay their pension. The company needs to know how much money it needs to eventually pay a customer so that it can plan for the future.

Your company wants to know how much this customer can expect for her pension.

She is 45 and she makes $30,000 per year.

Her pension will be 70 percent of her final year's earnings.

Her salary will increase by 4 percent each year

Find out what her salary will be at age 64.

Now calculate 70 percent of this figure. This will be her pension.

You'll need to use the formula:

Future salary = p x (1 + r)n

p = starting salary

r = interest rate

n = number of years

Contact

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  • 1-800-GO-TO-XAP (1-800-468-6927)
    From outside the U.S., please call +1 (424) 750-3900
  • North Dakota Career Resource Network
    ndcrn@nd.gov | (701) 328-9733

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