Arnold Rossiter is a 40-year-old employee of the Barrington Company who will retire at age 60 and expects to live to age 75. The firm has promised a retirement income of $20,000 at the end of each year following retirement until death. The firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. What is Barrington's annual pension contribution to the nearest dollar for Mr. Rossiter

Solution:

Find the PV (retirement) for the 15-year benefit payment:

$20,000(PVIFA7%, 15 years) = $182,158.28.

Find the average payment required to collect the following sum for a span of 20 years:

Annual payment = $182,158.28/ FVIFA 7%,

20 years = $4,443.37

$4,443.37 is Barrington's annual pension contribution to the nearest dollar for Mr. Rossiter

The annual pension contribution to the nearest dollar for Mr. Rossiter is $4443

Explanation:

From the given data,

we have to find PV( at retirement) of the 15 year pension payment

PV = FV / (1+r)ⁿ

      = $20000( PVIFA 7%, 15 years)

After calculating we get,

  PV = $182,158.28

Now, we have to find the annual payment to accumulate the above  amount over 20 years.

Annual payment = $182,158.28/ FVIFA 7%, 20 years

                             = $4,443.37

Therefore, The annual pension contribution to the nearest dollar for Mr. Rossiter is $4443

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

2,283,000

explanation:

i just had to add it