Defined Benefit Pension question question, practice, payments, benefit, related

ba736

Dear all,
Would you help me with one of the practice questions related to defined benefit plans?
On p, 184 Volume 2. Scenario 4 it is said that Value at the end of year 5 of the estimated future payments = PV of 13,544.68 for 20 years at 6 per cent = 155,356. I get the concept but I can’t seem to arrive at that number. Could you please help me with that?
Kind regards
Niko

thecfawannabe

Thank you!
LOL and I passed Level 1 Sometimes the simplest things are the ones that avoid us

ap0258

Wait, my calculation was just the simple TVM calc.  I didn’t take into consideration that you’re looking for the value at year 5.  So nevermind my last.

onelife1

It’s a basic TVM calculation.  Make sure you have P/Y = 1 in your calculator, and clear your calculator.
N = 20
I/Y = 6
PV = ???
PMT = -13,544.68
FV = zero
Enter the keystrokes, and hit CPT PV, and you get $155,356.4125.
(BTW–I didn’t look at the problem.  I’m just going by your information.)