ines Company agrees to provide lumpsum retirement benefits to an employee equal to 5% of final salary for each year of service. Information on an employee is shown below: Average annual salary level on December 31, 2020 - 1,000,000 Average annual salary increase starting January 1, 2021 and every year thereafter - 3% Average service lives before entitlement to retirement benefit (2021-2025) - 5 years Discount rate per year - 10% How much is the total lump sum retirement benefit?

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A:

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Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.