Question 5 Charles started working for Sabbina Company when he was 25 years of age at a starting salary of $30,500. Salaries expect to increase by 2.5% per year. He is entitled to a pension of 2% of...

Extracted text: Question 5 Charles started working for Sabbina Company when he was 25 years of age at a starting salary of $30,500. Salaries expect to increase by 2.5% per year. He is entitled to a pension of 2% of his final year's salary for each year of service. He intends to retire at age 65 and is expected to live 15 years after retirement. The discount rate is 5%. His pension payments will be paid at the beginning of each retirement year. Required: For the funding method projected unit, determine the funding required for year 2 (funding payments occur at the end of the year). Round to 2 decimals at each step. Choose the closest answer to your calculation. O 2864 O 2796 O 2727 O 2662