Question
Under the NBA deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options.
Under the NBA deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options. Option 1 allows the retiree to select the amount of the annual payment to be received, and option 2 allows the retiree to specify over how many years payments are to be received. Assume Rodman has had $6,800 deposited at the end of each year for 30 years, and that the long-term interest rate has been 8%. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.) |
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