The pension manager at Sunland Town Gardens estimates that retiree benefits of $749000 per year will be paid starting 12 years from today. Payments are estimated to be made for 20 years. Assuming an 14% interest rate, what is the closest value of the pension obligation today? O $9544874 O $776472 O $1173807 O $4960721

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Q: future value

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A:

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.