Pension Plans

An employee retiring from a company after 30 years of service at age 65 has earned a pension of $35,000 per year. Her expected life expectancy is 20 years further until age 85. The pension payments would end when she dies as she has no surviving spouse. Given a 12% discount rate based on the investment risk of her employer, what is the lump sum value of the pension when she retires? (Please consider $35,000 to be paid once a year.) Excerpts the Present Value of an Annuity table (Table 4) will help you use the right present value factor. The discount rate is 12% and the present value of an annuity factors at that rate are as follows:

5 years (periods) 3.605 10 years (periods) 5.650 20 years (periods) 7.469

Note: Please show the work in order for me to understand