Junior Ltd Employs Three Workers to Develop and Test Games

question 42

Multiple Choice

Junior Ltd employs three workers to develop and test games.The employees are currently earning $30,000 each and are expected to cease their employment in 20 years.At the end of their employment each employee is entitled to a lump sum payment equal to 10 per cent of their final salary.Actuarial analysis suggests salaries will increase evenly at a rate of 5 per cent per year over the 20 years.In 5 years' time,what total benefit will the three employees have accrued (rounded to the nearest dollar) :

• A) $114,865.
• B) $23,899.
• C) $165,000.
• D) $119,399.
• E) None of the given answers.