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Green Company sponsors a defined benefit pension plan. The pension formula is calculated based on the following formula: 1.5% x number of service years x
Green Company sponsors a defined benefit pension plan. The pension formula is calculated based on the following formula: 1.5% x number of service years x final salary. The assumed discount rate is 5%. If an employee is expected to retire in 10 years with a final annual salary of $200,000, has earned 20 years of service, and is expected to receive an annual pension for 20 years, the current PBO rounded to the full dollar will be
Multiple choice question.
$459,041.
$60,000. $
747,733.
$281,813
$1,200,000.
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