Opal Corporation is required to pay the pension cost of one of its unionized employees. According to the terms of the union contract, the employee will retire in seven years and receive $55,000 at the end of the three consecutive years following retirement. Interest is compounded annually years following retirement, ineln seven years and receive Requirement
Compute the pension obligation that Opal has incurred today if the discount rate is 10%. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, x.. Round intermediary currency computations and your final answer to the nearest cent, $X. XX.)
The pension obligation that Opal has incurred today if the discount rate is 10% is $