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CTP · Question #814
CTP Question #814: Real Exam Question with Answer & Explanation
The correct answer is B. $34,720. See the full explanation below for the reasoning.
Question
- (Topic 9) An employee who became vested in his/her employer's retirement plan upon reaching five years of service decides to resign after working for seven years. However, he/she will not reach retirement age for another six years. Referring to the employee's annual earnings above, if the plan is structured as a cash balance plan, what is the value of the employee's plan if benefits accrued at 8% per year and future annual salary inflation is 3%?
Options
- A$0
- B$34,720
- C$42,000
- D$50,150
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