Always friends

A group of Orange University graduates has decided to form a fund called "Always Friends", which will be managed by a SAB of recognized prestige.

For the formation of the fund it is necessary to gather 50 people among teaching staff, non-teaching staff and former students of the university, who will initially contribute $ 500 each, also committing to contribute monthly to the fund a certain amount of $ X dollars.The objective is to provide a prompt retirement to each of the shareholders, granting them a "monthly life pension" of $ 2,500 after 15 years.

In reality, this pension will be equal to the dividends obtained in the fund for the accumulation of their contributions up to that date;therefore, this pension will be perpetual and transferable to children, grandchildren, etc.

The problem is to calculate the monthly contribution $ X, for which we must assume certain assumptions:

• No shareholder will stop contributing for the next 15 years;In any case, you may transfer your shares to another person linked to the university as long as it commits itself to continue complying with theagreement.
• The fund will be invested in fixed andvariableincome investment portfolio. The possibility of venturing into short-term businesses with high profitability is not ruled out.At all times a careful risk analysis should be carried out in each alternative.
• The average net profitability to be obtained will be 34.49% TEA, excluding SAB commissions.This ASD will be maintained even after 15years.
• From the sixth year onwards, the services of a consulting firm that will charge $ 1,000 per month will be contracted, this amount will be increased to $ 2,000 from the eleventh year and to $ 3,000 from the sixteenthyear.