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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Definitions:

Coping Mechanism

Psychological strategies that individuals use to manage stress, difficult situations, or feelings of anxiety and depression.

Localizing

The process of making something local in character or restricting it to a particular place, especially in terms of adapting a product or content to meet the language and cultural requirements of a specific target market.

Sequencing

The process of arranging objects, actions, or events in a logical or chronological order.

Familiarizing

The process of making something well-known or better understood through repeated exposure or study.