Question
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.5% service years final year's salary, payable at the end of each year.
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.5% service years final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 1999 and is expected to retire at the end of 2033 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $88,000 at the end of 2013 and the companys actuary projects her salary to be $270,000 at retirement. The actuary's discount rate is 6%. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1
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