8. Salary expense under a labor contract is expected to be $100 million at the end of 10 years when the employees retire. The contract provides pension benefits, based on 1%

of the employees' final salaries, for each year worked. The average life expectancy of the employees after retirement is 25 years. The pension benefits will be paid at the end of each year after retirement and the discount rate is 5%. As a result of the benefits earned by the employees this year, the increase in the defined benefit obligation is closest to: a. b. C. $704,697. $9,085,083. $14,093,945.