标题: Defined Benefit Pension question [打印本页] 作者: ba736 时间: 2013-4-28 09:25 标题: Defined Benefit Pension question
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作者: onelife1 时间: 2013-4-28 09:25
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.)作者: ap0258 时间: 2013-4-28 09:26
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.作者: thecfawannabe 时间: 2013-4-28 09:26
Thank you!
LOL and I passed Level 1 Sometimes the simplest things are the ones that avoid us
Sometimes the simplest things are the ones that avoid us