Question: PLEASE HELP ME TO SOLVE THIS. HOW TO GET THIS CORRECT ANSWER. Jane is considering leaving her job and pension at age 65 and has

PLEASE HELP ME TO SOLVE THIS. HOW TO GET THIS CORRECT ANSWER.

Jane is considering leaving her job and pension at age 65 and has 31 years in the defined benefit pension plan which provides a retirement income based on 2% per year of service and the average best five years of income. Her best average five years earnings were $56,000.

The pension plan assumes life expectancy is age 92 and the rate of return on 1.1%.

What should the commuted value of her pension be if she wanted to transfer the funds into a LIRA? (The present value of the promised income stream). Input to the nearest dollar

Correct Answer: Correct 807,240 2

The correct answer is 807,240 2

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