The following information relates to the defined benefit pension plan of the Kraemerica Company. Only a single employee is covered by the plan. That employee has worked for Kraemerica since 1-1-2014 and she has earned pension benefits since 1-1-2014. Additional information is provided below.

1) Benefit formula: Upon retirement and upon reaching age 65, the employee will receive a pension payment annually (payments to be made as long as employee lives).

The first check will be issued one year after retirement.

The annual payment will be for 3% of employees highest annual salary multiplied by the number of years of service.

His salary has increased each year and is expected to increase each year in the future.

2) Expected Retirement Date: December 31, 2022 - he will reach age 65 at this time; first pension check is expected to be issued 12-31-2023

3) Expected Date of Death: January 1, 2030 (last (7th) pension check is expected to be issued 12-31-2029)

4) Actuarys Discount Rate (Settlement Rate): 6% per year

5) Actual Annual Salary for 2016: $60,000

6) Expected Annual Salary for 2022: $70,000

What is the projected benefit obligation (PBO) as of 12-31-2016 ?