Answer is B

Mark is hired at exact age 35, with a starting salary of 50,000. His salary increases occur at the end of each year. Mark's employer offers two different pension plans. A Defined Benefit (DB) plan that pays at retirement an annual annuity-due of 2% of the final 3-year average salary for each year of service. A Defined Contribution (DC) plan that contributes 1% of Mark's salary at the start of each year before retirement. The DC plan earns 4% per year. You are given: - (i) 265 10 (ii) Salary increases are 5% per year. (iii) Mark retires at exact age 65. Upon Mark's retirement, his DC plan is converted to a whole life annuity due payable annually in advance. Calculate the total annual payment Mark receives after he retires from both plans. A. 123,000 B. 123,300 C. 123,600 D. 123,900 E. 124,200 Mark is hired at exact age 35, with a starting salary of 50,000. His salary increases occur at the end of each year. Mark's employer offers two different pension plans. A Defined Benefit (DB) plan that pays at retirement an annual annuity-due of 2% of the final 3-year average salary for each year of service. A Defined Contribution (DC) plan that contributes 1% of Mark's salary at the start of each year before retirement. The DC plan earns 4% per year. You are given: - (i) 265 10 (ii) Salary increases are 5% per year. (iii) Mark retires at exact age 65. Upon Mark's retirement, his DC plan is converted to a whole life annuity due payable annually in advance. Calculate the total annual payment Mark receives after he retires from both plans. A. 123,000 B. 123,300 C. 123,600 D. 123,900 E. 124,200