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:

Biological Motives

Fundamental needs driving behavior, such as hunger, thirst, and the need for sleep, rooted in biological survival.

Negative Feedback

A process where a system's output is used to regulate or dampen changes, maintaining stability in the system.

Neurological Control

The regulation and coordination of neural activity across the nervous system, affecting functions such as movement, sensation, and decision-making.

Thermoregulation

The process that allows the body to maintain its core internal temperature, despite external environmental changes.