Present value. The State of Confusion wants to change the current retirement policy for state employees. To do so$,$

however, the state must pay the current pension fund members the present value of their promised future payments.

There are $220,000$ current employees in the state pension fund. The average employee is $22$ years away

from retirement, and the average promised future retirement benefit is $$360,000$ per employee. If the state has a

discount rate of $6\%$ on all its funds, how much money will the state have to pay to the employees before it can start a

new pension plan?

How much money will the state have to pay to the employees before it can start a new pension plan?