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Actuary

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AVG. SALARY

$92,020

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EDUCATION

Bachelor's degree

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

  • Email Support

  • 1-800-GO-TO-XAP (1-800-468-6927)
    From outside the U.S., please call +1 (424) 750-3900

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.