Assume the actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $60,000. If the benefits relate to an estimated 25 years of service and five of those years have been completed:
A) The EPBO would be $12,000.
B) The EPBO would be $8,400.
C) The APBO would be $8,400.
D) The APBO would be $12,000.
Correct Answer:
Verified
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