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3. You know that there is a wave of retirements that will take place in 15 years' time, and that the pension fund will have to pay out $81'400 a month in perpetuity to the beneficiaries as of that time. If you can invest the fund at an annual rate of 7.22% (compounded monthly), what amount would need to be on the fund today to be able to pay out the required sums? Round your answer to the nearest whole number (for example 45.239 = 45). amount needed today Answer: 3. You know that there is a wave of retirements that will take place in 15 years' time, and that the pension fund will have to pay out $81'400 a month in perpetuity to the beneficiaries as of that time. If you can invest the fund at an annual rate of 7.22% (compounded monthly), what amount would need to be on the fund today to be able to pay out the required sums? Round your answer to the nearest whole number (for example 45.239 = 45). amount needed today Answer:
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The correct formula to calculate the present value of an annuity in perpetuity is PV P... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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