Heidi Jackson Has a Twin Brother,Phil,who Works for the Government

question 23

Essay

Heidi Jackson has a twin brother,Phil,who works for the Government of Alberta.Phil is covered by a defined benefit pension plan.Phil just turned 45 years old,and expects to retire at age 65.At that time,the pension plan will pay Phil annual pension payments equal to 2% of his final year's salary for each year of services rendered.The pension payments will continue until Phil's death,which actuaries expect to be when he turns 95 years old.For the current year,Phil will earn $55,000,and this rate is expected to increase by 5% per year.Assume that the Alberta Government uses a 10% interest rate for its pension obligations.
Requirement:
Determine the current service cost for Phil Jackson's pension for the past year (the year just before he turned 45).

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Definitions:

Business Writing

Professional communication through documents such as reports, emails, proposals, and memos, tailored for business contexts.

Active Voice

Active voice is a sentence construction where the subject of the sentence performs the action expressed by the verb, emphasizing the doer of the action.

Return Policy

A set of rules established by a company regarding how customers can return or exchange purchased items and under what conditions.

Unhappy Customers

Unhappy customers are individuals who are dissatisfied with a product, service, or experience, often leading to complaints or negative feedback.