Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee's monthly salary is $70,000 and decided
An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee's monthly salary is $70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to P100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: After her retirement, she receives a monthly pension of P10,000, one month after her last payment. This pension is made to be forever, what will be the equivalent present worth of the said pension? O P402,147.81 P500,832.41 P4,825,773.72 O P6,009,988.92
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started