What Is the Total Pension Expense for the Following Plan

question 58

Multiple Choice

What is the total pension expense for the following plan after 10 years? "The company must contribute $100/year for each of its 500 employees. The plan hopes to accumulate enough funds so that each retiree receives $10,000 in the future; the plan does not guarantee the investment returns to the employees."

• A)$1,000
• B)$100,000
• C)$500,000
• D)$5,000,000

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