Your employer contributes $60 a week to your retirement plan. assume you work for your employer for another 20 years and the applicable discount rate is 9 percent. given these assumptions, what is this employee benefit worth to you today?.
Present value annuity will be given by: PVA=P[1-(1+r)^-n]/r where: PVA=present value annuity P=periodic paymeny r=rate per period n=number of periods substituting the value we get PVA=60*[1-{1/(0.09/52)]^20})/(0.09/52)] this will give us: $28,927.38
