Timu Joined the Firm 12 Years Ago and Is 42

question 78

Multiple Choice

Timu joined the firm 12 years ago and is 42 today.The firm has a post-retirement health care plan with the following coverages for retirees: Timu is expected to retire at age 63.The present value today of 100% post-retirement health care coverage for Timu is $20,000,considering life expectancy and other factors.The present value of 75% coverage is $14,000.What is the accumulated post-retirement benefit obligation for Timu today?

• A) $20,000
• B) $14,000
• C) $8,000
• D) $5,600

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Definitions:

Burn Down

In project management, a graphical representation showing the amount of work remaining in a project over time, often used in agile development.

Chronic Depression

A mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, lasting for two years or more.

Symptoms

Observable signs or indications of a disease or disorder experienced by individuals.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome often less severe than anxiety disorders.