Service years x Final year's salary. Carol was hired by Perry at the beginning of $2017.$ Clark is expected to retire at the end

of $2056$ after $40$ years of service. Her retirement is expected to span $15$ years. At the end of $2026,10$ years after being

hired, her salary is $$60,000.$ The company's actuary projects Clark's salary to be $$210,000$ at retirement. The actuary's

discount rate is $6\%.$

Percentage of final year's salary

Total years of service

Service years through December $31,2026$

Clark's salary at December $31,2026$

Retirement is expected to span

Clark's projected salary at retirement

Actuary's discount rate

Required:

Estimate the amount of Carol's annual retirement payments for the $15$ retirement years earned as of the

end of $2026.$

Suppose Perry's pension plan permits a lump$-$sum payment at retirement in lieu of annuity payments.

Determine the lump$-$sum equivalent as the present value as of the earned retirement annuity at the

expected date of retirement $($the end of $2056).$

$3.$ What is the company's projected benefit obligation at the end of $2026$ with respect to Carol?

$-=B$ Graded Worksheet