Question: A pension plan promises to pay $30,000 at the end of each year for 25 years of the retirement period. Required: Compute the funds required

A pension plan promises to pay $30,000 at the end of each year for 25 years of the retirement period.


Required:

Compute the funds required to fund this pension plan at the start of the retirement period assuming: 

a. A discount rate of 8% 

b. A discount rate of 6%

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