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7. C Companys defined benefit pension plan specifies annual retirement benefits equal to 2.0% times service years times final years salary, payable at the end
7. C Companys defined benefit pension plan specifies annual retirement benefits equal to 2.0% times service years times final years salary, payable at the end of each year. Employee number 99 was hired by C at the beginning of 2010 and is expected to retire at the end of 2039. Retirement is expected to last 25 years. 99s salary is $100,000 at the end of 2019 and the actuary projects her salary to be $180,000 at retirement. The discount rate is 8%.
Required: show the computing process
- Estimate using the Projected benefits approach the amount of 99s annual retirement payments earned as of the end of 2019.
- What is Cs projected benefit obligation at the end of 2019 with respect to 99.
- If no estimates are changed, what will Cs projected benefit obligation be at the end of 2026 with respect to 99.
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