Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1 . 3 % times service years times final year's salary,

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.3%\times service years \times final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $91,000 at the end of 2021 and the company's actuary projects her salary to be $285,000 at retirement. The actuary's discount rate is 9%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)(Use appropriate factor(s) from the tables provided.) Required:2. Estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021.3. What is the company's projected benefit obligation at the end of 2021 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)4. If no estimates are changed in the meantime, what will be the company's projected benefit obligation at the end of 2024(three years later) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Management Text And Cases

Authors: George H. Hempel, Alan B. Coleman, Donald G. Simonson

3rd Edition

ISBN: 0471621781, 978-0471621782

More Books

Students also viewed these Accounting questions

Question

=+c) What is/are the response(s)?

Answered: 1 week ago

Question

2 What are the psychological stages of coping with change?

Answered: 1 week ago

Question

6 Why is change considered a central aspect of HRM practice?

Answered: 1 week ago