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goblinko [34]
3 years ago
7

Your employer contributes $60 a week to your retirement plan. assume you work for your employer for another 20 years and the app

licable discount rate is 9 percent. given these assumptions, what is this employee benefit worth to you today?.
Business
1 answer:
frutty [35]3 years ago
3 0
Present value annuity will be given by:
PVA=P[1-(1+r)^-n]/r
where:
PVA=present value annuity
P=periodic paymeny
r=rate per period
n=number of periods
substituting the value we get
PVA=60*[1-{1/(0.09/52)]^20})/(0.09/52)]
this will give us:
$28,927.38
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The computation is shown below:

Explanation:

The journal entries are shown below:

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Balance sheet

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3 years ago
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