Mr. Wong inherited ₱100,000.00, when he was born. The amount was placed for his own pension fund (bank account), which earns interest at 12% compounded monthly. He withdrew ₱5,000,000.00 on his 35th birthday to make an initial payment on a house. He drew his pension plan on a uniform monthly payment starting on his 60th birthday and plan to make uniform withdrawals so as to just exhaust the fund up to the age of 80. Unfortunately Wong died at the age of 75 before withdrawing the amount due at that date, how much is left in the fund to be passed unto the heirs of Wong at the time of death? What if the pension plan was based on perpetual monthly withdrawals, what amount would be available to him assuming that he lives a long life?.

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aAssuming that Mr Wong died on his 75th birthday the balance in his pension fund would be as follows ... View the full answer