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Assume $20m was invested today to provide for pension payments for a group of employees. Assume also that the average return on these funds was
Assume $20m was invested today to provide for pension payments for a group of employees. Assume also that the average return on these funds was 8.5%. Advisor's counseled the company that a conservative investment return of 6% annually for the next 13 years would be advisable and that the company would have to contribute annually to make up the shortfall.How much would have to be contributed annually beginning year 13 if the fund earned 6% in order to achieve the 25 year goal?
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