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Please solve the above question! (Compulsory) 17. Mr.Arun will retire at the end of 10 years. Upon retirement he is entitled to receive an annual
Please solve the above question!
(Compulsory) 17. Mr.Arun will retire at the end of 10 years. Upon retirement he is entitled to receive an annual end of year payment of 1,20,000 for 15 years. If he does prior to the end of the 15 years period, his heirs would be entitled to the contractual payment. His employers, Reliance Industries Ltd. Has to accumulate funds to provide a retirement annuity by making, an equal annual year-end deposited into an accounting earning 7% interest. When the 15 year payment period begins the company would transfer the accumulated fund into an account earning a granted 9% at the end of the company period, the account balance would be zero required. (a) How much would the company accumulate by the end of the year? (b) What should be the company's equal annual end-of-year deposit into the account be over the 10 years. Period to fund fully the retirement annuallyStep by Step Solution
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