A man intends to save up money for his retirement so that he can withdraw equal sums of P18,000 for his yearly needs from his 60th to 70th birthdays. For his 41st to 59th birthdays, he invests an equivalent amount in a fund that earns 12%. What should the amounts for each of them be?

A man intends to save up money for his retirement so that he can withdraw equal sums of P18,000 for his yearly needs from his 60th to 70th birthdays. For his 41st to 59th birthdays, he invests an equivalent amount in a fund that earns 12%. What should the amounts for each of them be?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 19P

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Question

A man intends to save up money for his retirement so that he can withdraw equal
sums of P18,000 for his yearly needs from his 60th to 70th birthdays. For his 41st
to 59th birthdays, he invests an equivalent amount in a fund that earns 12%. What
should the amounts for each of them be?

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