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The Ritz Company has a 40-year-old employee that w...

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The Ritz Company has a 40-year-old employee that will retire at age 60 and live to age 75. The firm has promised a retirement income of $20,000 at the end of each year following retirement until death. The firm?s pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. What is Ritz?s annual pension contribution to the nearest dollar for this employee? (Assume certainty and end-of-year cash flows.) a. $2,756 b. $3,642 c. $4,443 d. $4,967 e. $5,491

 

Paper#6908 | Written in 18-Jul-2015

Price : $25
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