Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Employee Tinkers Evers Chance Annual Date of First Payment Payment $27,000 12/31/24 32,000 12/31/25 37,000 12/31/26 Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2021. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2024, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first contribution will be made on December 31, 2021. Compute the amount of this required annual contribution. (For all requirements, Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) PV Employee 1. Tinkers Evers Chance 2. Amount of annual contribution TABLE 2 Present Value of $1 $1 PV = (1 + i) wi 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 0.0% 11.0% 12.0% 20.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57870 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48225 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 7 8 9 10 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.23257 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.475090.42888 0.38753 0.35049 0.31728 0.28748 0.13459 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.07789 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.494470.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.05409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.04507 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03756 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 25 0.77977 0.68921 0.609530.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.233000 .18425 0.14602 0.11597 0.09230 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.11174 0.09256 0.02174 0.08170 0.06588 0.01258 0.07361 0.05882 0.01048 0.05382 0.04187 0.00607 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 31 0.73458 0.63031 0.54125 40 0.67165 0.55126 0.45289 0.47674 0.41199 0.35628 0.30832 0.267000.23138 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068 TABLE 4 Present Value of an ordinary Annuity of $1 1- (1+) PVA= - wi 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 0.0% 11.0% 12.0% 20.0% 1 2 3 4 5 0.99010 0.98522 1.97040 1.95588 2.940992.91220 3.90197 3.85438 4.85343 4.78264 0.98039 0.97561 1.94156 1.92742 2.88388 2.85602 3.807733.76197 4.71346 4.64583 0.97087 1.91347 2.82861 3.71710 4.57971 0.96618 0.96154 0.95694 1.899691.886091.87267 2.80164 2.77509 2.74896 3.67308 3.62990 3.58753 4.51505 4.45182 4.38998 0.95238 1.85941 2.72325 3.54595 4.32948 0.94787 1.84632 2.69793 3.50515 4.27028 0.94340 1.83339 2.67301 3.46511 4.21236 0.93458 1.80802 2.62432 3.38721 4.10020 0.92593 1.78326 2.57710 3.31213 3.99271 0.91743 0.90909 0.90090 0.89286 0.83333 1.75911 1.73554 1.71252 1.69005 1.52778 2.53129 2.48685 2.44371 2.40183 2.10648 3.23972 3.16987 3.10245 3.03735 2.58873 3.88965 3.79079 3.69590 3.60478 2.99061 6 7 8 9 10 5.79548 5.69719 6.728196.59821 7.65168 7.48593 8.56602 8.36052 9.47130 9.22218 5.60143 6.47199 7.32548 8.16224 8.98259 5.50813 5.41719 6.349396.23028 7.170147.01969 7.97087 7.78611 8.75206 8.53020 5.32855 5.24214 6.11454 6.00205 6.87396 6.73274 7.607697.43533 8.31661 8.11090 5.15787 5.07569 4.99553 4.91732 4.76654 4.62288 5.89270 5.78637 5.68297 5.58238 5.389295.20637 6.595896.46321 6.33457 6.20979 5.97130 5.74664 7.26879 7.10782 6.95220 6.801696.515236.24689 7.91272 7.721737.537637.360097.02358 6.71008 4.48592 4.35526 4.23054 4.11141 3.32551 5.03295 4.86842 4.71220 4.56376 3.60459 5.53482 5.33493 5.146124 .96764 3.8371 5.99525 5.759025.537055.32825 4.03097 6.41766 6.14457 5.88923 5.65022 4.19247 11 12 13 14 15 10.36763 11.25508 12.13374 13.00370 13.86505 10.07112 10.90751 11.73153 12.54338 13.34323 9.78685 10.57534 11.34837 12.10625 12.84926 9.51421 10.25776 10.98319 11.69091 12.38138 9.252629.00155 9.95400 9.66333 10.63496 10.30274 11.29607 10.92052 11.93794 11.51741 8.76048 9.38507 9.98565 10.56312 11.11839 8.52892 9.11858 9.68285 10.22283 10.73955 8.30641 8.09254 7.88687 8.863258.61852 8.38384 9.39357 9.11708 8.85268 9.89864 9.589659.294 10.37966 10.03758 9.71225 7.49867 7.94269 8.35765 7.13896 7.53608 7.90378 6.80519 6.49506 6.20652 5.93770 7.16073 6.81369 6.49236 6.19437 7.48690 7.10336 6.74987 6.42355 4.32706 4.43922 4.53268 9.10791 8.55948 8.06069 7.60608 7.190876.81086 4.67547 16 14.71787 14.13126 13.57771 17 15.56225 14.90765 14.29187 18 16.39827 15.67256 14.99203 1917.22601 16.42617 15.67846 20 18.04555 17.16864 16,35143 13.05500 12.56110 12.09412 13.71220 13.16612 12.65132 14.35336 13.75351 13.18968 14.97889 14.32380 13.70984 15.58916 14.87747 14.21240 11.65230 12.16567 12.65930 13.13394 13.59033 11.23402 10.83777 11.70719 11.27407 12.15999 11.68959 12.59329 12.08532 13.00794 12.46221 10.46216 10.105909.44665 8.85137 8.31256 7.82371 7.37916 6.97399 4.72956 10.86461 10.47726 9.76322 9.12164 8.54363 8.02155 7.548797.11963 4.77463 11.24607 10.82760 10.059099.371898.75563 8.20141 7.701627.24967 4.81219 11.60765 11.15812 10.33560 9.60360 8.95011 8.36492 7.839297.36578 4.84354 11.95038 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 4.86958 21 25 30 40 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 22.02316 20.71961 19.52346 18.42438 17.41315 16.48151 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 14.02916 15.62208 17.29203 19.79277 13.40472 14.82821 16.28889 18.40158 12.82115 14.09394 15.37245 17.15909 12.27524 13.41393 14.53375 16.04612 11.76408 12.78336 13.76483 15.04630 10.83553 11.65358 12.40904 13.33171 10.01680 10.67478 11.25778 11.92461 9.29224 9.82258 10.27365 10.75736 8.64869 8.07507 9.07704 8.42174 9.42691 8.69379 9.77905 8.95105 7.56200 4.89132 7.84314 4.94759 8.05518 4.97894 8.24378 4.99660