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Question
A defined benefit pension plan has expected payouts of $15 million per year for 8 years and then $20 million over the following 15 years. Actuaries have estimated that the fund can be expected to earn an average of 5.25% on its assets. The fund currently has reserves of $185,475,000. The plan is ___________ by about ___________ million.
A. underfunded; $100
B. underfunded; $59
C. overfunded; $30
D. overfunded; $24
E. underfunded; $46
Answer
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