At the age of 25, Martin gets a job with an initial salary of 30,000 paid at
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At the age of 25, Martin gets a job with an initial salary of £30,000 paid at the end of the year. He forecasts that his salary will increase at a constant rate of 2 per cent per annum until he retires in 40 years’ time. Martin saves 10 per cent of his salary each year in a pension scheme and these savings are invested at a rate of return of 5 percent. If Martin uses the accumulated savings in his pension fund to purchase an annuity, what annual pension will he receive if he expects to live for a further 20 years in retirement?
£38,773 | ||
£507,355 | ||
£40,711 | ||
£483,195 |
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
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