Much better and in-depth explanation compared to third party cfa notes
@newmercies1 Жыл бұрын
Excellent video, thank you so much.
@rodrigomontoya1145 Жыл бұрын
Beautiful example.
@EK-eg8oh2 ай бұрын
Shouldn’t the current service cost be the PV of defined benefit at retirement divided by total years of service (i.e. 10943/15) then be present valued at 7% for 14 years? The current service cost from year 1 to year to should approximate $282 this way?
@MbusoThabethe Жыл бұрын
Hi, thank you for the video. I however got lost when accumulating 8488x1.07^14 = 21 886. I could not relate this number to the PBO at the end of working for 16 years 10 929 (pmt 1556, i = 7, n 10, fv = 0) . Please assist. Many thanks
@greenlandpatriot Жыл бұрын
Is it 100000*1.03^*15*? or is it "^14"? The salary increase happens at end of year for the next year, so wouldn't it be 15-1?
@newmercies1 Жыл бұрын
Jason has already worked for 1 year = 100k and it is estimated that he will work for another 15 years, 16 years of work in total. So the calculation here is correctly posted for 15 years of increase @ 3% annually.
@bhanukumar91657 ай бұрын
Can anyone see a big mistake in the video?
@Vicsar2124 ай бұрын
Earned benefit shouldn't be added to a previous earned benefit amount. It's just one amount that can change. The employee is only getting paid one annuity when they retire.
@mathias30263 ай бұрын
@@Vicsar212 I think they can add earned benefit to the previous amount since it only reflects the added future liability to the company, as a result of the employee working one additional year. It is the same as the first year, since the added liability is the same (i.e. a promise to pay annually until death; 1% of final salary of $155797 or $1558 per year).