Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age $60$ is attained and they have completed $35$ years of service. The benefits provide $15$ years reimbursement for health care services of $$35,000$ annually, beginning one year from the date of retirement.

Ralph Young was hired at the beginning of $1988$ by Oregon after turning age $22$ and is expected to retire at the end of $2026($age $60).$

The discount rate is $5\%.$ The plan is unfunded.

The PV of an ordinary annuity of $$4$ where $n=15$ and $i=5\%$ is $10\mathrm{.}37966.$

The PV of $$1$ where $n=2$ and $i=5\%$ is $0\mathrm{.}90703.$

What is the present value of Ralph's net benefits as of his expected retirement date, rounded to the nearest dollar?

Multiple Choice

$$272,270$

$$363,288$

$$525,000$