Eleni, Who Is Now 55 Years Old, Is Employed by a Firm

question 78

Multiple Choice

Eleni, who is now 55 years old, is employed by a firm that guarantees her a pension of $40,000/year at age 65. What is the present value of her first year's pension if inflation over the next 10 year(s) is at the given rate. Assume that inflation is continuously compounded. 4% _________
8% _________
19% _________

• A) $32,749.23, $34,142.61, $5,982.74
• B) $32,749.23, $32,749.23, $5,982.74
• C) $32,749.23, $32,749.23, $34,142.61
• D) $26,812.80, $17,973.16, $5,982.74

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