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 $250,000$ current employees in the state pension fund. The average employee is $18$ years away from retirement, and the average promised future

retirement benefit is $$360,000$ per employee. If the state has a discount rate of $4\%$ on all its funds, how much money will the state have to pay to the employees before it can start a new

pension plan?