Calculate the annual benefit payment for the retirement

Assignment Help Finance Basics
Reference no: EM132730253

An employee with 25 years of service at a company is considering retirement at some point in the next 10 years. The employer uses a final pay benefit formula by which the employee receives an annual benefit payment of 2% of her average salary during her last 5 years of service times the total years employed. The employees average salary over the last 5 years of service is as follows:

Retire now: $125,000

Retire in 5 years: $135,000

Retire in 10 years: $140,000

Calculate the annual benefit payment for the retirement now, in 5, and 10 years.

Reference no: EM132730253

Questions Cloud

What is a mutual fund : What is a mutual fund? In what sense is it a financial institution?
Principal demographics of household owners : What are the principal demographics of household owners of mutual funds?
What are the three components of the return : What are the three components of the return that an investor receives from a mutual fund?
What is the net rate of return from investment : An investor purchases a mutual fund for $47.50. The fund pays dividends of $1.50, distributes a capital gain of $2, and charges a fee of $2 when the fund
Calculate the annual benefit payment for the retirement : Calculate the annual benefit payment for the retirement now, in 5, and 10 years.
Calculate the value of the bond of james : Judith would like to send her parents on a cruise for their 30th wedding anniversary five years from today. The price of the cruise is expected
What is the balance after 30 years : You deposit $ 1500 every 6 months into an annuity with an annual interest rate of 12.5% compounded semi-annually. What is the balance after 30 years?
Explain the relationship between price of a bond : a. Explain the relationship between price of a bond and its yield to maturity (YTM), and why is it so?
Effect on the present value of an annuity : Suppose the price of a mortgage that you are interested in buying is £300,000 and you have 10% of the money for down payment handy.

Reviews

Write a Review

Finance Basics Questions & Answers

  All of the company''s drivers

1. Whitley Transport Company is a regional trucking company headquartered in a southeastern city of the U. S. The company's risk manager is trying to decide whether to recommend to senior management that all of the company's drivers be require..

  Salespeople play three primary roles

1) Salespeople play three primary roles? What are they? Explain each with relevant details.

  What is the liquidity premium for year

If the liquidity premium theory of the term structure of risk-free rates holds, what is the liquidity premium for year 2, L2?

  Job outside of the business

Paul has a job outside of the business but does provide about 125 hours a year to help market the business.

  Expenses of retiring the current debt and issuing new debt

"We will refinance your current debt at an "all-in" annual cost of 10.55%. This will include all the expenses of retiring the current debt and issuing new debt

  What is the new equity beta and ke post recap

Again 10 year treasuries are 2% and the expected market return is 8%. the corporate tax rate is 35%. what is the new equity beta and Ke post recap?

  Show entries in general journal form for the transactions

Finance,Accounts Receivable,Bonds ,revenue expenditure - Show entries in general journal form for the following transactions for a certain public university

  Calculating the company net capital spending

Calculating Net Capital Spending. Rotweiler Obedience School's December 31, 2015, balance sheet showed net fixed assets of $1,975,000, and the December 31.

  What changes would be considered uses of funds

Describe the changes is balance sheet accounts that would constitute sources of funds. What changes would be considered uses of funds?

  Suppose that twin oaks four year bond had seminannual

twin oaks health center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until

  Assignment on bond valuation

The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70.

  What is the relation between the reported value of assets

what is the relation between the reported value of assets and reported earnings? what is the relation between the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd