Calculate the current value of pension

Assignment Help Financial Management

Reference no: EM13971014

Peter is about to retire from a company in which he worked for 24 years. Peter participated in Defined Benefit Plan which uses Unit Credit Formula (2.4% of average of 3 highest salaries multiplied by number of years of services). The three highest salaries for Peter are: $121,000, $124,000 and $127,000. Calculate the current value of Peter's pension at 7% return if remaining life expectancy is 25 years.

A. $834,084

B. $832,346

C. $842,130

D. $847,042

Reference no: EM13971014

Questions Cloud

Communicating and delivering value : The most formal definition of marketing is Meeting needs profitability An organizational Function and a set of process for creating ,communicating and delivering value to customers and that benefit the organization

What is apparent weight of girl at the highest point in ride : What is the apparent weight of the girl at the lowest point in the ride? (Hint: Her apparent weight is equal to the force of the seat acting on her).

The hotel to obtain maximum protection for the equipment : Terry is a computer salesperson, she is staffing a booth at a computer expo and has bought with her approximate $30000 worth of laptops what must she do vis-a vis the hotel to obtain maximum protection for the equipment? what if she fails to do so?

Realistic assessment of expected revenues : Draft budgeted financial statements from 2012 to 2015 under both options that provide a realistic assessment of expected revenues and costs, and explain how you have arrived at these budgeted figures.

Calculate the current value of pension : Peter is about to retire from a company in which he worked for 24 years. Peter participated in Defined Benefit Plan which uses Unit Credit Formula (2.4% of average of 3 highest salaries multiplied by number of years of services). The three highest sa..

Using the hotel industry as the larger market : Using the hotel industry as the larger market, specify a niche market and match that niche to a hotel brand that accommodates those customers. Explain your reasoning. The economy plays a critical role in a consumer’s ability to pay for products and s..

Totality of the subjective experience : Do you think the concept of emotional labour is sufficient, on itsown, to capture the totality of the subjective experience of the callcentre operator's labour process? Why?400 Words. Minimum 3 Referencing (Harvard)

Incorporating these new values and the real option : This question is a variant of the Sport Hotel example that was presented in class, in the class notes, and in the Real Option chapter. Suppose that the value of the hotel is not $8 million but instead is $9.5 million if the city is successful in obta..

What will be her speed at the bottom of the swing : If, at the beginning of a cycle (2 m above the lowest point), the child is given a push so that her starting speed is 3 m/s, what will be her speed at the bottom of the swing?

User Account

All Pages