How many additional percent per year beyond 30 years can be earned, according to the maximum multiplier rules?

How many additional percent per year beyond 30 years can be earned, according to the maximum multiplier rules?

• A. 1.5%
• B. 2.0%
• C. 3.0%
• D. 2.5%

Answer: (D)

Understanding how maximum multiplier rules cap the extra growth after 30 years. Beyond that point, the allowed increase per year is limited to 2.5%. So the highest additional percent you can earn for each year after year 30 is 2.5%. For example, at year 31 you could add up to 2.5%; at year 32 you could add another up to 2.5% (and so on), depending on how the increments are applied. The other figures either fall short of the cap or exceed what the rule allows, so they don’t reflect the maximum per-year increase.

Understanding how maximum multiplier rules cap the extra growth after 30 years. Beyond that point, the allowed increase per year is limited to 2.5%. So the highest additional percent you can earn for each year after year 30 is 2.5%. For example, at year 31 you could add up to 2.5%; at year 32 you could add another up to 2.5% (and so on), depending on how the increments are applied. The other figures either fall short of the cap or exceed what the rule allows, so they don’t reflect the maximum per-year increase.