Use financial calculator or excel to calcute the answer.

QUESTION

A pension fund of $500 million in a mutual fund is withdrawn $5 million every month starting in one month. If the fund earns j12 is 6%, find how many regular payments can be made and find the amount of the smaller payment if:

a. the smaller payment is paid on the date of the last regular payment

b. the smaller payment is paid one month after the date of the last regular payment