With respect to Ralph,what is the interest cost to be included in Oregon's 2017 postretirement benefit expense,rounded to the nearest dollar?

Question

Quizplus · Accepted Answer

The interest cost is calculated as the present value of the expected future benefits multiplied by the discount rate. The present value of the expected future benefits is $156,040, and the discount rate is 5%. Therefore, the interest cost is $156,040 x 5% = $7,802.

With Respect to Ralph,what Is the Interest Cost to Be