In this problem, I did the following correctly:
1. Solved for the employer's fraction of the UVB being 109,524.
2. Correctly reduced this by the deductible of 36,601. Employer's withdrawal liability is 72,923.
3. Calculated a payment annually of 20,350.
4. Bumbed up the withdrawal liability by one year's worth of interest to make the PV of payments 78,757.
Here is where I am confused. In the solution I have found, they use the annual payment amount of 20,350. Using this method and my trusty BAII plus I see that it takes 4.389 payments to fully amortize the liability.
I assumed because of ERISA 4219(c) that I would have to use quarterly installments. Using my BAII plus I calculate that 18.168 payments are needed. This means that a total of 92,430 are paid which would be answer E. I see that ERISA also states that different payment frequencies can be used but it doesn't shed any light on that.
Why is interest not brought to quartly dates for this calculation? Is there something I am missing in the required reading. Any help would be very much appreciated.
When I use quarterly installments, I see that it takes 18.168 payments to fully amortize the liability.