Harry has just started a new job at Thermopylae International (TI). TI has a defined benefit plan and uses the projected unit credit method of calculating its obligation. The benefit plan calls for payments equal to 4 percent of final salary every year for five years after retirement at age 65. Harry is age 62. His starting salary is $120,000 per year. Harry's salary will increase 10 percent every year. The discount rate used is 8 percent. Calculate TI's current pension obligation to Harry.

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The Answer of Harry has just started a new job at Thermopylae International (TI). TI has a defined benefit plan and uses the projected unit credit method of calculating its obligation. The benefit plan calls for payments equal to 4 percent of final salary every year for five years after retirement at age 65. Harry is age 62. His starting salary is $120,000 per year. Harry's salary will increase 10 percent every year. The discount rate used is 8 percent. Calculate TI's current pension obligation to Harry.

Harry Has Just Started a New Job at Thermopylae International