The Certainty Company (CC) operates in a world of certainty. It has just hired 3 employees. The finance department is assessing the retirement benefits that each new employee will receive and the cost of the employer will assume. 1. Matt is a male, age 20 . He is anticipated to retire at age 65 . He will with draw retirement benefits until his anticipated death, which is currently calculated as age 80 by actuaries employed by Zurich Investments. 2. Claire is a female, also age 20 . She is anticipated to retire at age 65 . She will draw retirement benefits until her anticipated death, which is currently calculated as age 90 by those same actuaries. 3. Jerry is a male, age 45 . He is also anticipated to retire at age 65 and will draw retirement benefits until his anticipated death. Actuaries calculate the life longevity to be 80 . The finance department and the investment company which holds the retirement accounts for these individuals, uses the following assumptions. 1. All three employees have similar backgrounds and education. They all start at $50,000 a year. 2. Wages increase regularly at a 5% annual rate of return. 3. CC has a defined benefit plan, so that workers receive 1% of the final year's wage for each year employed. 4. The retirement benefit, once started, does not have a cost of living adjustment. 5. CC earns 10% annually on its pension fund assets. 6. Pension contributions and cash flow benefits occur at the end of the year. In light of these assumptions, please answer the following questions: 1. What is the final year's salary for each employee, assuming they work at CCC until retirement? 2. What is each employee's annual retirement payment? 3. What must each employee's fund be worth by the time the employee retires at 65 , assuming they work at CCC until retirement? 4. What is CC's required annual contribution (payment) to fully fund each employee's retirement benefits? The Certainty Company (CC) operates in a world of certainty. It has just hired 3 employees. The finance department is assessing the retirement benefits that each new employee will receive and the cost of the employer will assume. 1. Matt is a male, age 20 . He is anticipated to retire at age 65 . He will with draw retirement benefits until his anticipated death, which is currently calculated as age 80 by actuaries employed by Zurich Investments. 2. Claire is a female, also age 20 . She is anticipated to retire at age 65 . She will draw retirement benefits until her anticipated death, which is currently calculated as age 90 by those same actuaries. 3. Jerry is a male, age 45 . He is also anticipated to retire at age 65 and will draw retirement benefits until his anticipated death. Actuaries calculate the life longevity to be 80 . The finance department and the investment company which holds the retirement accounts for these individuals, uses the following assumptions. 1. All three employees have similar backgrounds and education. They all start at $50,000 a year. 2. Wages increase regularly at a 5% annual rate of return. 3. CC has a defined benefit plan, so that workers receive 1% of the final year's wage for each year employed. 4. The retirement benefit, once started, does not have a cost of living adjustment. 5. CC earns 10% annually on its pension fund assets. 6. Pension contributions and cash flow benefits occur at the end of the year. In light of these assumptions, please answer the following questions: 1. What is the final year's salary for each employee, assuming they work at CCC until retirement? 2. What is each employee's annual retirement payment? 3. What must each employee's fund be worth by the time the employee retires at 65 , assuming they work at CCC until retirement? 4. What is CC's required annual contribution (payment) to fully fund each employee's retirement benefits