Bob retired nine years ago with a superannuation payout of $360 000. When Bob retired he...
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Bob retired nine years ago with a superannuation payout of $360 000. When Bob retired he set-up a 30-year pension fund from which he receives a cheque each fortnight. The interest rate he has been receiving is 5.2% p.a. compounding fortnightly. Find the value of each fortnightly cheque he is currently receiving. a. 3.5 marks b. Find the amount still in the fund at the present time. 2 marks c. Find the new amount that Bob would receive now if the fund's interest rate is now reduced to 4.9% p.a. compounding fortnightly. 3 marks Bob retired nine years ago with a superannuation payout of $360 000. When Bob retired he set-up a 30-year pension fund from which he receives a cheque each fortnight. The interest rate he has been receiving is 5.2% p.a. compounding fortnightly. Find the value of each fortnightly cheque he is currently receiving. a. 3.5 marks b. Find the amount still in the fund at the present time. 2 marks c. Find the new amount that Bob would receive now if the fund's interest rate is now reduced to 4.9% p.a. compounding fortnightly. 3 marks
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Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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