Sue Cameron has a twin$$ brother, Tom$,$ who works for the Government of Alberta. Tom is covered by a defined benefit pension plan. Tom just turned $45$ years$$ old, and expects to retire at age $65.$ At that$$ time, the pension plan will pay Tom annual pension payments equal to $3\%$ of his final$$ year's salary for each year of services rendered. The pension payments will continue until Tom$\text{'}$s $$death$,$ which actuaries expect to be when he turns $80$ years old. For the current$$ year, Tom will earn $ $50$ comma $000,$ and this rate is expected to increase by $8\%$ per year. Assume that the Alberta Government uses a $10\%$ interest rate for its pension obligations.

Requirement

Determine the current service cost for Tom Cameron$\text{'}$s pension for the past year$($the year just before he turned$45).$

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Part $1$

Start by determining Tom$\text{'}$s annual salary at the time of his retirement. $($Use a financial$$ calculator, and round all final answers to the nearest whole$$ dollar.$)$

Tom$\text{'}$s annual salary at the time of retirement will be $$$

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