Allen is planning for his retirement pension fund. He expects to receive £20,000 a year for 30 years during his retirement. If the interest rate remains constant at 2%, how much should be in his pension fund by the time he retires?

Allen is planning for his retirement pension fund. He expects to receive £20,000 a year for 30 years during his retirement. If the interest rate remains constant at 2%, how much should be in his pension fund by the time he retires?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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Question

Allen is planning for his retirement pension fund. He expects to receive £20,000 a year for 30 years during his retirement. If the
interest rate remains constant at 2%, how much should be in his pension fund by the time he retires?
O £571,428
O £630,000
£456,888
O £1,000,000

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