Question

Your employer contributes $60 a week to your retirement plan. assume you work for your employer for another 20 years and the applicable discount rate is 9 percent. given these assumptions, what is this employee benefit worth to you today?.

Answer 1

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