Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20. Juan Reyes inherited P280,000 on his birthday. This he placed in his own pension fund (bank account), which earns interest at 12% compounded annually.

image text in transcribed

20. Juan Reyes inherited P280,000 on his birthday. This he placed in his own pension fund (bank account), which earns interest at 12% compounded annually. He withdraw P450,000 on his 35th birthday to make the initial payment on a house. He drew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund. He died at the age of 71, however, just before withdrawing the amount due on that date. How much is left in the fund to be passed on to the heirs at the time of Juan's death

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Vickie L Bajtelsmit

2nd Edition

111959247X, 9781119592471

More Books

Students also viewed these Finance questions

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago