Question
A person, in order to receive a pension for a period of 25 years from the date of retirement, He signed with a pension fund
A person, in order to receive a pension for a period of 25 years from the date of retirement, He signed with a pension fund and retired. In the first year this person retires His total income (salary, wage) is 20,000 $. This figure represents this person's livelihood in the first year. will suffice to cover its costs. However, the cost of living increases annually due to inflation. It is expected to increase by 7% on average. According to the agreement, the pension fund The annual amount to be paid to this person by him will remain constant for 25 years. In this case this The person deposits a portion of their living expenses in the coming years to the bank with an annual interest of 9%. will have to pay from the income of the time deposit account. This person will earn a living for the next 25 years. How much money should he save in the bank to cover his expenses?
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