Maestro Superannuation Plan Provides the Following Information Relating to the Period

Maestro Superannuation Plan provides the following information relating to the period ended 30 June 2014: $$\begin{array} { | l | r | } \hline \text { Gross benefit payment to an individual based on an actuarial analysis as at 30 June } 2014 & \$ 400000 \\\hline \text { Commonwealth government guaranteed securities } & 5 \% \\\hline \text { Current anticipated rate of return on assets (for the period of the benefit liability) } & 8 \% \\\hline \text { Quality corporate bond rate for the period of the benefit liability } & 7 \% \\\hline\end{array}$$ The actuarial assumption used to calculate the liability was that the individual would take the benefit as a lump sum on retirement in 10 years' time.What is the present value of the expected future benefit payment (rounded to the nearest dollar) ?

A) $245 565
B) $203 339
C) $185 277
D) $370 370

Correct Answer:

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