Question
You have been called in to evaluate whether a pension fund is adequately funded to meet its obligations. The cashflow obligations of the fund are
You have been called in to evaluate whether a pension fund is adequately funded to meet its obligations. The cashflow obligations of the fund are defined below:
$ 2 million a year : 2020-2024( Years 1-5)
How much would the fund need to have on the beginning point, that is on Jan.1,2020 to meet these obligations, if the interest rate on its deposits is 10% ?
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
