The Jets Company sponsors a pension plan with the following pension benefit formula:

\(\begin{aligned} & \text { Benefit paid at each year-end } \\ & \text { during retirement }\end{aligned}=2 \% \times(\) Number of service years) \(\times\) (Annual salary at retirement)

Credit for service began January 1,2019 , Shuler's first day with the company with a starting salary of \(\$ 45,000\). Shuler is expected to work a total of 25 years with an annual salary at retirement of \(\$ 150,000\). He is expected to draw 10 years of retirement benefits. The discount rate is \(10 \%\). Starting January 1, 2021, Shuler's new salary is \(\$ 47,250\) after a \(5 \%\) raise.

Required

a. Considering the information above, compute the following amounts:

1. \(\mathrm{PBO}\) on January \(1,2020\).

2. \(\mathrm{ABO}\) on January 1,2020 .

3. \(\mathrm{PBO}\) on January \(1,2021\).

4. \(\mathrm{ABO}\) on January \(1,2021\).

b. Consider the following three additional, separate scenarios and compute the following amounts:

1. PBO on January 1, 2020, assuming that the discount rate is \(8 \%\).

2. PBO on January 1,2020 , assuming that the starting salary is \(\$ 100,000\) and final salary is \(\$ 325,000\).

3. PBO on January 1,2020 , assuming that the retirement period is 20 years instead of 10.