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Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1 . 3 % service years x final year's salary, payable at the
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to service
years final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the
beginning of and is expected to retire at the end of after years' service. Her retirement is
expected to span years. Davenport's salary is $ at the end of and the company's actuary
projects her salary to be $ at retirement. The actuary's discount rate is
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and
PVAD of $
Required:
What is the company's projected benefit obligation at the beginning of after years' service
with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Estimate by the projected benefits approach the portion of Davenport's annual retirement payments
attributable to service.
What is the company's service cost for with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
What is the company's interest cost for with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Combine your answers to requirements and to determine the company's projected benefit
obligation at the end of after years' service with respect to Davenport.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
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