Examine by the accumulated benefits approach

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Reference no: EM13125548

Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2002 and is expected to retire at the end of 2031 after 30 years' service. Her retirement is expected to span 13 years. Davenport's salary is $90,000 at the end of 2011 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 8%.

Use PV Table-2 and Table-4

Required:

Estimate by the accumulated benefits approach the amount of Davenport’s annual retirement payments earned as of the end of 2011. (Omit the "$" sign in your response.)

Reference no: EM13125548

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