Tom began working for Zenon Corporation at age 40 and immediately qualified for the company pension plan.
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Tom began working for Zenon Corporation at age 40 and immediately qualified for the company pension plan. Tom retired at the age of 65, after 25 years of service. The pension provided Tom with a $35,000 annual pension, to be paid at year-end, for 15 years. Assume a constant interest rate of 8% during Tom’s 25 working years and 7% since Tom’s retirement, per actuarial estimates. Zenon Corporation funds their pension using a constant amount at the end of each year during the employment period.
Related Book For
Taxation for Decision Makers 2014
ISBN: 9781118654545
6th edition
Authors: Shirley Dennis Escoffier, Karen Fortin
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