Question
Use the following information for question 15. Terraria Constructions, Inc. offers a pension plan to its employees with a pension formula of 1.25%*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 1.25%*Years of Service*Final Years Salary. Suzanne has been working for Terraria for 12 years. The corporate actuaries expect her to retire in 18 more years with a final salary of $425,000 and for her retirement period to last for 20 years. Her current salary is $175,000. The actuarys discount rate is 7%.
15. What is projected benefit obligation (PBO) for Suzannes pension?
a. $82,277.65.
b. $199,817.14
c. $299,871.65.
d. $499,542.86.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started