Question
Use the following information for question 15. Terraria Constructions, Inc. offers a pension plan to its employees with a pension formula of 1.50%*Years of Service*Final
Use the following information for question 15. Terraria Constructions, Inc. offers a pension plan to its employees with a pension formula of 1.50%*Years of Service*Final Years Salary. Suzanne has been working for Terraria for 15 years. The corporate actuaries expect her to retire in 21 more years with a final salary of $425,000 and for her retirement period to last for 25 years. Her current salary is $175,000. Assume that the pension payments are best valued using the present value of an ordinary annuity and that the actuarys discount rate is 7%. What is projected benefit obligation (PBO) for Suzannes pension?
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