An employee currently earning $60,000 a year is 40 years old and has been working for the
Question:
An employee currently earning $60,000 a year is 40 years old and has been working for the firm for 15 years.
The pension plan promises benefits in retirement of 2% of final salary times years of service. If normal retirement age is 65, the interest rate is 8%, and the employee’s life expectancy is 85, what is the present value of the accrued pension benefit?
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He has accrued an annuity of 02 15 60000 18000 per ...View the full answer
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Related Book For 
ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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