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Benefits and Contributions

payments. Assume that pension contribution and benefit cash flows occur at year$-$end. Do not round intermediate calculations. Round your answers to the nearest dollar.

a$.$ How much will Mr$.$ Jones receive in annual retirement benefits?

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b$.$ What is CC$\text{'}$s required annual contribution to fully fund Mr$.$ Jones' retirement benefits?

$ benefits?

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What do the results imply about the costs of hiring older versus younger workers?

From a pension funding standpoint alone, $CC$ would favor elect$-V$ worker as the $[-$Select$-V$ worker requires higher annual pension fund contributions.

d$.$ Now assume that CC hires Ms$.$ Brown, age $23,$ at the same time that it hires Mr$.$ Smith. Ms$.$ Brown is expected to retire at age $65$ and to live to age $84.$ What is CC$\text{'}$s annual pension cost for Ms$.$ Brown?

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If Mr$.$ Jones and Ms$.$ Brown are doing the same work, are they truly doing it for the same pay?

The company is actually "paying" Ms$.$ Brown $[-$select$-$ than they are paying Mr$.$ Jones.