Alpesh Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4 % x service years x final year's salary,payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $82,000 at the end of 2024 and thecompany's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 8%.At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decidedthat 9% is the appropriate rate.Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Required:Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport.Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.Thegainon PBO is$31,156

Answered: Image /qna-images/answer/0ee51ea0-cebb-4207-9035-ddc9bc87b617.jpg

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA of $1, Required: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. The gain on PBO is $ 31,156

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA of $1, Required: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. The gain on PBO is $ 31,156

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

See similar textbooks