Question
Xuan Xuan current salary is $79000 per anum. it is expected that her salary will increase at the forecast inflation rate of 3% per annum.
Xuan Xuan current salary is $79000 per anum. it is expected that her salary will increase at the forecast inflation rate of 3% per annum. Xuan Xuan Joined ABC Ltd on 1 July 2017. All employees of the ABC Ltd are entitled to a 13-week long service leave when they complete 10 years of service. The discount rate for high quality corporate bonds with 3 years and 7 years to maturity is 6% and 8% respectively, and the likelihood of Xuan Xuan staying with the company until 30 June 2027 is 35%. Calculate the provision required for long service for Xuan Xuan at 30 June 2020 ?
a. 1488
b. 4254
c. 1265
d. 1799
e. 4961
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