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Question A1 Part I (a) Your father is now aged 50 and plans to start saving for 15 years to accumulate $1,500,000 at the age
Question A1
Part I
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(a) Your father is now aged 50 and plans to start saving for 15 years to accumulate $1,500,000 at the age of 65 as his retirement fund. Given the required return is 9 percent compounded monthly, what will be his monthly payments with the first payment occurring one month from now? (5 marks)
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(b) Followed with the previous question in part (a), what will be his annual payments if your father makes an annual saving with the first payment starting from today? (6 marks)
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