Happy-go-lucky Superannuation Plan provides the following information relating to the period ended 30 June 2014: $$\begin{array} { | l | r | }
\hline \text { Gross benefit payment to an individual based on an actuarial analysis as at 30 June } 2014 & \$ 500000 \
\hline \text { Commonwealth government guaranteed securities } & 5 \% \
\hline \text { Current anticipated rate of return on assets (for the period of the benefit liability) } & 9 \% \
\hline \text { Quality corporate bond rate for the period of the benefit liability } & 7 \% \
\hline
\end{array}$$ The actuarial assumption used to calculate the liability was that the individual would take the benefit as a lump sum on retirement in 6 years' time.What is the present value of the expected future benefit payment (rounded to the nearest dollar)?

Question

Happy-go-lucky Superannuation Plan provides the following information relating to the period ended 30 June 2014: $$\begin{array} { | l | r | } 
\hline \text { Gross benefit payment to an individual based on an actuarial analysis as at 30 June } 2014 & \$ 500000 \
\hline \text { Commonwealth government guaranteed securities } & 5 \% \
\hline \text { Current anticipated rate of return on assets (for the period of the benefit liability) } & 9 \% \
\hline \text { Quality corporate bond rate for the period of the benefit liability } & 7 \% \
\hline
\end{array}$$ The actuarial assumption used to calculate the liability was that the individual would take the benefit as a lump sum on retirement in 6 years' time.What is the present value of the expected future benefit payment (rounded to the nearest dollar)?

Quizplus · Accepted Answer

The Answer of Happy-go-lucky Superannuation Plan provides the following information relating to the period ended 30 June 2014: $$\begin{array} { | l | r | } 
\hline \text { Gross benefit payment to an individual based on an actuarial analysis as at 30 June } 2014 & \$ 500000 \
\hline \text { Commonwealth government guaranteed securities } & 5 \% \
\hline \text { Current anticipated rate of return on assets (for the period of the benefit liability) } & 9 \% \
\hline \text { Quality corporate bond rate for the period of the benefit liability } & 7 \% \
\hline
\end{array}$$ The actuarial assumption used to calculate the liability was that the individual would take the benefit as a lump sum on retirement in 6 years' time.What is the present value of the expected future benefit payment (rounded to the nearest dollar)?

Happy-Go-Lucky Superannuation Plan Provides the Following Information Relating to the Period