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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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