Answer the following macroeconomics questions with explanations

Question 14.19 A pension fund offers the following benefit to its members: upon age retirement at any age, a member will receive an annual pension equal to 1/60th of final pensionable salary for each year of service, up to a maximum of two thirds of final salary. The pension fund is due to be valued on 1 July 2005. Salaries are increased each year on 1 July. Final pensionable salary is defined to be the average salary earned over the three years preceding retirement. Normal pension age is 65. At the valuation date, one member is aged 40 exactly, has 18 years of past service and earned $32,000 over the last year. Calculate the expected present value of the past and future service benefits for this member assuming that mortality, retirement, interest and salary scale are as given in the Tables.A pension scheme provides a pension of of final pensionable salary for each year of service, with a maximum of