Pv of pension liability of each retirement cohort

Assignment Help Basic Statistics
Reference no: EM131914464

You are the CFO of Termination, Inc. Your company has 40 employees, each earning a salary of $40,000/year. Employee salaries grow at 4% per year. Starting from next year, and every second year thereafter, eight employees retire and no new employees are recruited. Your company has in place a pension plan that entitles retired workers to an annual pension which is equal to their annual salary at the moment of retirement. Life expectancy is 20 years after retirement, and the annual pension is paid at year-end. The return on investment is 10% per year. What is the total value of your pension liabilities as of now? Hint: The total value of your pension liabilities will be the sum of the PV of pension liability of each retirement cohort.

Reference no: EM131914464

Questions Cloud

Need program that outputs the lyrics for ninety-nine bottles : Design your program with a class named BeerSong whose constructor takes an integer parameter that is the number of bottles of beer initially on the wall
What is the average cost assigned to each unit included : Mickley Company's predetermined overhead rate is $20.00. If Job A-500 consists of 80 units, what is the average cost assigned to each unit included in the
Should the legal system restrain mcdonald use of toys : In 2010, the Center for Science in the Public Interest and a concerned parent sued McDonald's for deceptive advertising by using toys in Happy Meals.
What focal length do you think was used in the scene : What focal length do you think was used in the scene? What type of depth of field: shallow or great?
Pv of pension liability of each retirement cohort : What is the total value of your pension liabilities as of now? Hint: The total value of your pension liabilities will be the sum of the PV of pension liability
What section references cases rulings determinations etc : What section references, cases, rulings, determinations etc. of AUSTRALIAN taxation law were used as authority the conclusion?
What is the expected price in years : Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided you
Make an object for the movie with the title the godfather : Make an object for the movie with the title "The Godfather" from the year 1972 - Make an object for the movie with the title "The Dark Knight" form the year
Average number of unoccupied seats : A large airline wants to estimate its average number of unoccupied seats per flight over the past year. To accomplish this, the records of 30 flights

Reviews

Write a Review

Basic Statistics Questions & Answers

  Enough statistical evidence to reject the null hypothesis

Setting α = 0.05, do you have enough statistical evidence to reject the null hypothesis? Why or why not? Now you want to test whether the population variances are equal. Setting α = 0.05, do you have enough statistical evidence to reject that the p..

  Statistical testing - t tests and proportions

Do men and women have different beliefs on the ideal number of children in a family? Based on the following GSS2008 Data and the obtained t statistics, what would you conclude?

  Percentage of employees at bureau process fewer forms

What percentage of employees at the Bureau process fewer forms than Michael? What percentage of employees at the Bureau process more forms than Michael?

  Annual budget for a certain company

The pie chart below shows how the annual budget for a certain company is divided by department. If the total budget is 125,000,000, what amount is budgeted for Support, Sales, and Media combined?

  Explain the distinction between at least 3 out of 5 vs at

explain the distinction between at least 3 out of 5 vs. at most 3 out of 5. identify other terminology or expressions

  A sample of 40 children with chronic bronchitis are studied

peak expiratory flow pef is a measure of a patientotildes ability to expel air from the lungs. patients with asthma or

  Probability of married women using binomial distribution

A recent survey indicated that 82% of single women aged 25 years old will be married in their lifetime.

  Hypothesis for the difference among the two means

Elucidate the null and alternative hypothesis for the difference among the two means. In testing the difference between the means of two.

  Suppose that n items are sampled from a manufacturing

suppose that n items are sampled from a manufacturing process and the number of defective items found among these is x.

  Confidence interval for the population proportion

Use this information to construct a 95% confidence interval for the population proportion who sold unwanted gifts over the Internet

  Is given evidence is strong evidence

A company with a fleet of 150 cars found that the emissions systems of 7 out of the 22 they tested failed to meet pollution control guidelines. Is this strong evidence that more than 20% of the fleet might be out of compliance?

  What is the probability that you drew the ball from bag a

There are two bags, each containing 100 ping-pong balls. Bag A contains 100 red balls and no black balls, and bag B contains 20 red and 80 black.

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