Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM.
Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM.
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 36P
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Transcribed Image Text:1. Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month
P30 was withheld from his salary and matched by an equal contribution from his
employer, to be kept into a retirement fund. At the end of each year the contributions
for the year were invested in a trust fund where it earned 8% interest compounded
annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20
annual payments, the first to be received immediately. What was the amount of each
payment? DRAW THE CASH FLOW DIAGRAM.
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