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19. Your company is offering you a pension which will pay you and your family for the next 100 years $1000 per month and they

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19. Your company is offering you a pension which will pay you and your family for the next 100 years $1000 per month and they will guarantee this payment to grow by 4% annually. a. What is the approximate value of this pension plan, assuming current interest rates are 6%? b. What is this pension worth if they do not offer to increase the payments by 4%? 20. Complete the table below for the cashflows which currently have a Present Value of $26,730.07: Present Value Rate(%) 1.50 2.25 Cashflow $1000 Year 1 2 3 4 5 $4,782.37 $6,341.08 $7,000 $8,000 $10,000 5 5.00

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