number 7 is the question i need help on , i provided both present value tables because i dont know which one to use and i provided the answer to 6 to help with 7 thankyou
7.) Based on the following information calculate the present value of retirement benefits as of the retirement date. Write in the amount on the cover sheet. $ FACTS: The company has a defined benefit plan Joe's salary at the end of 2017 Retirement expected after Retirement period is expected to be Interest Rate Benefits are calculated as a formula as the product of: Service already provided Percentage Final year's salary is projected to be 104,000 45 20 2.0% years of service years years 15 2.0% 299,000 $ TABLE 4 Present Value of an ordinary Annuity of $1 PVA 1.04 1 .5% 2.00% 2.5% 30% 3.9 4.0% 4.5% 6.0% 5.5% 6.076 7 .0% 0.0% 0.0% 0.0% 11.0 12.0 20.0% 1 0.00 0.98522 0.90 0.97561 0.97087 0.98610 0.96154 0.95694 0.95238 0.94787 0.96340 0.93458 0.92593 0.91746.90909. 0.90090 0. 06 0.00333 1.97040 1.95508 1.94156 1.92742 1.91347 1.8999 1.000 1.67267 1.85041 1.84632 1.83309 1.000 1.70326 1.751 173554'1.71252 1.2005 1.SITE 3 29402 2.91220 2.80360 2.85.602 2.82861 2.80164 2.77500 2.74096 2.72325 2.69793 2.67301262432 2.57710 2.50129 2.48585 2.4 2.40183 210640 3.90197 3.054381.80773 3.76197 371710 3.6730836290 3.58753 3.54595 3.50515 3.46511 3.35721131213 72 3.1657 3.10245 303735 2.58873 4.850 4.7624 4.713464.6450 4.579714 .51505 445102 301784.32948 270041236, 4.10020. 3.99771 380965 3.79079 078 2.79061 6 5.795485.69719 5.60143 5.500135.41719, 5.32855 52214 5.15787 5.07560 4.99993 4.91732 4.7665441226 44692-35526 423054 411141 2.77561 6.72019 4.21 6.4719 6.349396.23000 6114546.00205 5.0W/O SOSIY S66297550235.50928507 5.09295 4.64642 4.712204160450 7.651007A 7.3254 7.170147 ,0190 0.87396.73274. 6.5 646121 6.33457.6.2017 5.10 5.74664 5.5 5.33493 5.140124. 1 6 90 .36002 0 2 0.167247 .970577 .78611740700743533 7.76879 7.107826.952206.0010 4.515236.2460 5.99525 5.7902. 5.5370 6.705 4. 00 109.47130 9.22218 8.98250 8.75206 8.500 0.31661 8.11090 7.91272 7.721737.5763, 76000 7.000 6.71008 641766 6.14457 8.623 02 4.19247 11 10.36763 10.07112 768 9.51421 9.250 9.0015 8.76046 6.5.2002 0.0641 09254 7.00 74907 7.13696 6.30519'64606 6.20052 5.70 4.20 12 11.25508 10.90751 10.5/534 10.28776 0.95400 9.663339,38507 9.110588.66.125 .61852. 8.58364 7.920 7.53608 746073 63136492366.19437443922 13 12.13374 11.73153 11.4837 10.98319 10.43496 10.30274 9.98565 9.60285 9.39357 2.41708 8.85266 8.357657.90378 TANO 7.10336,6747 BAZIS 4.53268 14 13.00370 12.54338 12.10625 11.10091 11.2007 10.92052 10.56312 10.22283 9.89864 9.965 9.29478 8745476244247.7615.7.3666.96187 642817 4.61057 15 13.36505 13.34323 12.04926 12.36130 11,93794. 11.51741 11.11837 10.73955 10.37966 10.03758 9.71225 9.10791 0.68 0.00001 74000 790076.81066 467547 16 14.71787 14.13126.13.51771 13.05500 12.56110 12.0012. 11.66230 11.23402 10.83777 10.46216 1010590 2.44665. 2.051376.312567.123717.37916 6.9739472956 9 17 15.54225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11.2740710.86461 1047726 9.76322 9.121645 M .02155 7.54870 7.1963 4.77463 18 16.391.27 15.67256 14.99203 14.35336 13.75351 13.18968 12.65930 12.15999 11.60959 - 11.2460 10.12700 10.05900 1.371808.75543 8.201417.70162 7.21967 4,81219 19. 17,226015642617 15.67846 74.97889.14.32380 13.70984 13.13394 12.59329 12.08532 11.60765 11.15812 10.3356060360 0.95011 8.300/270029 7.578 4.84350 20 18.04555 17.16864 16.35143, 15.58916 14.87747 14.21240 13.59033 13.00794 12.46221 11.95038 11.4012 10.59401 9.81815 9.12855 8.51356 7.96333 7.449444.80058 21 18.85098 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 13.40472 1282115 12.27524 11.76408 10.83553 10.016809292248.64889 2.07507 7.562004,89132 25 22.02316, 20.71961 19.52346. 1842438 1741315 16.48151. 15.02208 14.82821 14.09394 13.41393 1278336 11.65358 10.67478 9.82258 9.077048A21747.84314 4.94759 30 25.80771 24.01584 22.39646 20.93029 19.40044 18.39205 17.29203 16.28389 15.37245 14.53375 13,76483 124094 11.25778 10.27385 942691 8.69379 3.09518 497894 40 32,83469 29.91585 27.35548 25,10278 23.11477 21.35507 19.79277 18.40158 17.15909 16.04612 15.04630 13.33171 11.92461 10.75736 977905 8.95105 3.24378 4.99660 payments made at the end of each compounding period. and time periods (n). It is used to calculate the present value This table shows the present value of an or TABLE 2 Present Value of $1 PV- F W 1.0 1.5 2.0% 2.5% 2.0% 2.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 0.0% 0.0% 100% 1.0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95230 0.94787 11.04 12.07 . 20.0% 2 096030 0.97066 0.96117 0.94340 0.93458 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845' 0.89000 0.92593 0.91743 0.909090.90090 0.89286 . 0.83333 3. 0.97059 0.95632 0.94232 0.87344 0.92860 0.91514 0.90194 0.88960 0.87630 0.86354 0.85161 0.85734 0.84168 0.826450.81162 0.791/19 44 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85400' 0.83856 6.82270 0,80722 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57070 5. 0.95747 0.92626 0.90573 0.88385 0.66261 0.84197 0.82193 0.86245 0.78353 076513 0.74726 0.7129 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48725 046068 0.64993 0.62092 0.59345 0.56743 040160 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.767900,74622 0.72525 0.70496 0.66634 7 0.93272. 0.90103 0.87056 0.84127 0,81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.46506 0.62275 0.63017 0.594270.56447 0.53464 0.50663 0,33490 8 0.92348 0.88771 0.85349 0.82075 0.78961 0.75961 0.73069 0.70319 0.7684 0.65160 0.62741 0. 50 0.58349 0.54703 0.51316048166 0.45235 0 Z7908 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.54027 0.50187 046661 0.43393 0.40368 0.22257 0.50025 0.90529 0.86167 0.82035 10 0,39092 0.36001. 0.46049 0.42410 0.78120 0.74409 0.70192 0.67556 0.64393 0.61391 0.50543 0.19381 0.55839 0.50035 0.46319 0.42241 0.38554 0.85218 0.32197 0.16151 11 0.09632 0.84093 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 0.4268 0.38753 0.45049 0.31728 0.28748 0.13459 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 049697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46834 0.414960.36770 0.32618. 0.28956 0.25751 0.22917 0.09346 3.14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748.0.5.3997 0.50507 0.47257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 6.6789 15 0.86135' 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 048102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.200000:18270 0 06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 042458 0.39365 0.33873 0.29180 0.251870 .21763 0.18829 0.16012 0.00409 004507 17 0.84438 0.77639 0.71416.0.65720. 0,60502 0.55720 0.51337 047318 0.43630 0.40245 0.37136 0.31657 0.7027 0.23107 0.19784 0.16963 0.14564 0.00756 -18 0.83602 0.76491 0.70016 0.64117.0.50739 0.53836 0.49363 045280 0.41552 0.381470.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03130 190.82774 0.75361 0.68643" 0.62553 0.57029 0.52016 047464 043330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19649 0.16351 0.13768 0.11611 0.02608 20 0.81954.0.74247 0.87297 0.61027 0.55368 0.50257 0.45639 041464 0,37689 0.31273 0.31100 0.25842 0.21455 0.1753 0.14864 0.12403 0.10367 0.00174 21 - 0.81143 0.731500.65978 0.59539 0.53755 0.485570,43883 0.39679.0.35094 0.32186 0.29416 0.24151 0.1986 015370 0.13513 011174 0.09256 0.24898 0.19715 0.15770 0.01258 0.12540 0.10153 0.00170 0.65 0.01048 .146020.1159 0.07361 0.05862 0.09230 24 078757 0.69954 0.62172 0.55288 0.49193 043796 0.39012 0.34770 0.31007 0.27656 0.0007 25 0.77977 0.68921 0.60953 0.53939. 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.233000.18425 0.00506 0.08215 0.06304 0.04849 0.03738 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 -0,29157 0.25509 0.72332 0.19563 0.15040.11591 0.00055 0.06034 0.06362 0.04187 0.00021 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36375 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.0938 0.07537 0.05731 0.01368 B 0.02360 GOST 0.47674041199 0.35628 0.30832.0.26700 0.23138 0.20054, 0.17411 0.13137 30 0.74192 0.61976 0.55207 0.04 0.00184 0.02209 0.01538 0.0107 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.72036 0.19018 0.16425 0.12277 0.09202 0.0005 0.05210 0.00 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.205.29 0.17193 0.14205 0.11746 0.09722 0.06878 6.) Use the senion for 0.) Use the pension formula (including a projection of future salary levels to determine the retirement bereits earned to date." answer in on the cover sheet. FACTS: The company has a defined benefit plan Jessica's salary at the end of 2017 is Retirement expected after Retirement period is expected to be Interest Rate Benefits are calculated as a formula as the product of: Service already provided Percentage Final year's salary is projected to be $ 119,000 45 20 4.0% years of service years 22 years 3.0% $ 285,000 20 3.01 X 22 X 285,000 = 188,100
