Question
Bob retired nine years ago with a superannuation payout of $360 000. When Bob retired he set-up a 30-year pension fund from which he
Bob retired nine years ago with a superannuation payout of $360 000. When Bob retired he set-up a 30-year pension fund from which he receives a cheque each fortnight. The interest rate he has been receiving is 5.2% p.a. compounding fortnightly. Find the value of each fortnightly cheque he is currently receiving. a. 3.5 marks b. Find the amount still in the fund at the present time. 2 marks c. Find the new amount that Bob would receive now if the fund's interest rate is now reduced to 4.9% p.a. compounding fortnightly. 3 marks
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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