use 4 decimal Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each monthP30 was withheld from his salary and matched by an equal contribution from hisemployer, to be kept into a retirement fund. At the end of each year the contributionsfor the year wvere invested in a trust fund where it earned 8% interest compoundedannually. Pedro retired on his 60th birthday and elected to receive an annuity of 20annual payments, the first to be received immediately. What was the amount of eachpayment? DRAW THE CASH FLOW DIAGRAM.

First, we find the future equivalent value of the annual payments (P60) that are being made each…

Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM.

Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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