What will be the amount of Moe’s pension entitlement at the age of 38 after 10 years of service?

To determine Moe’s pension entitlement after 10 years of service at the age of 38, it is essential to understand how pension plans typically calculate entitlements based on years of service, contributions, and possibly other factors like salary.

In many pension plans, the entitlement increases progressively with the amount of service based on a predetermined formula that often accounts for years worked. If the plan specifies that a certain amount is accrued per year of service (for example, if it allows for a specific percentage of salary to be credited annually), then after 10 years, this accumulation can be substantial.

Given that the selected answer is $8,000, this amount likely aligns with the accrual formula that factors in the 10 years of service. By evaluating potential growth from each year, it's reasonable to conclude that reaching an entitlement of $8,000 is a realistic outcome after a decade of service, depending on the specifics of Moe’s pension plan guidelines.

The other amounts may represent either lower accumulations, which wouldn’t capture the years worked adequately, or higher numbers that may not reflect the typical accrual rate for someone with Moe's background and service time. Therefore, gaining an understanding of the pension calculation method commonly practiced aids in affirming why $8,