John joins XYZ Company at age 50, works 10 years and terminates employment at age 60. John earned a defined benefit of $2,000 per month payable at age 65 in a single life annuity form. Assume that $1 per month annuity commencing at age 65 and payable for Johns life only is worth $10.

a. What is Johns pension worth at age 65? b. How much would XYZ need to provide to John over his 10 year career in a defined contribution plan to accumulate the same value as the XYZ pension age 65? Assume annual compound investment earnings of 5%.