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questiont: Pension You have decided to contribute 6000 per annum to a pension fund that guarantees a rate of return of 4 per cent per
questiont: Pension You have decided to contribute 6000 per annum to a pension fund that guarantees a rate of return of 4 per cent per annum on any contributions made to the fund. You plan to retire 20 years from now and to use the funds accumulated the pension fund at the end of the 20 years to finance an annual pension payment for the subsequent sixteen years, your anticipated retirement period. Assuming that your contributions to the fund and the pension payments made by the fund will occur at the end of each year, determine the expected value of the annual pension payment you can expect to receive
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