The EPBO for a Particular Employee on January 1, 2018

question 75

Multiple Choice

The EPBO for a particular employee on January 1, 2018, was $30,000. The APBO at the beginning of the year was $6,000. The appropriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1, 2018. What is the APBO at December 31, 2018?

• A) $6,300.
• B) $7,200.
• C) $7,500.
• D) $7,560.

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Definitions:

Waking Thoughts

The thoughts and mental processes that occur during the state of being awake.

Hidden Observer

A hypothetical part of the mind proposed by Ernest Hilgard to explain phenomena such as hypnotic pain reduction, suggesting an aspect of the self remains aware but detached from the hypnotized state.

Hypnotized Person

An individual who is in a state of hypnosis, characterized by increased suggestibility, relaxation, and altered consciousness.

Mind

The aspect of an individual that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.