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Suppose that in a certain defined benefit pension plan (a) Employees work for 45 years earning wages that increase at a real rate of 2%
Suppose that in a certain defined benefit pension plan
(a) Employees work for 45 years earning wages that increase at a real rate
of 2%
(b) They retire with a pension equal to 70% of their final salary. This pension
increases at the rate of inflation minus 1%.
(c) The pension is received for 18 years.
(d) The pension fund
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