What Is the Total Pension Expense for the Following Plan

question 35

Multiple Choice

What is the total pension expense for the following plan after 5 years? "The plan requires the company to contribute $500 for each of its 1,000 employees. The plan hopes to accumulate enough funds so that each retiree receives $20,000 in the future; the company has no obligation to guarantee the investment returns."

• A)$2,500
• B)$100,000
• C)$2,500,000
• D)$20,000,000

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Definitions:

Split Labour Market

A theory that explains the division of the labor market into separate segments, often leading to conflict and discrimination between groups of workers.

Low-wage Workers

Individuals employed in positions that pay less than the average wage, often without benefits and job security.

High-wage Workers

Individuals employed in occupations or industries that offer compensation significantly above the average wage level within an economy or specific geographic area.

Genetic Differences

Variations in the DNA sequence among individuals, populations, or species, which contribute to the biological diversity and individual uniqueness.