$($Note: Problems $1-5$ are variations of the same situation, designed to focus on different

elements of the pension plan.$)$

Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to $1\mathrm{.}6\%$

service years $$ 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 of $2044$ after $35$ years' service.

Her retirement is expected to span $18$ years. Davenport's salary is $$90,000$ at the end page $1030$

of $2024$ and the company's actuary projects her salary to be $$240,000$ at retirement.

The actuary's discount rate is $7\%.$

Required:

Draw a time line that depicts Davenport's expected service period, retirement period, and a $2024$

measurement date for the pension obligation.

Estimate by the accumulated benefits approach the amount of Davenport's annual retirement

payments earned as of the end of $2024.$

What is the company's accumulated benefit obligation at the end of $2024$ with respect to

Davenport?

If no estimates are changed in the meantime, what will be the accumulated benefit obligation at

the end of $2027($three years later$),$ when Davenport's salary is $$100,000?$