a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50 years. The fund will be earning 9.6% compounded monthly for the first 30 years and 7.2% compounded monthly for the last 20 years. In order to be able to make these payments, how much money would have to be in the pension fund now?

a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50 years. The fund will be earning 9.6% compounded monthly for the first 30 years and 7.2% compounded monthly for the last 20 years. In order to be able to make these payments, how much money would have to be in the pension fund now?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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