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Violet Company sponsors a defined benefit pension plan. The pension formula is calculated based on the following formula: 2% x number of service years x final salary. The assumed discount rate is 5%. If an employee is expected to retire in 20 years with a final annual salary of $200,000, has earned 30 years of service, and is expected to receive an annual pension for 30 years, the current PBO rounded to the full dollar will be_________

User Yitzchak
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Answer: $240000

Explanation: The pension formula results in $120000

Therefore FV=240000

User Mrbranden
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