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A Pension Plan Promises to Pay $75,000 at the End

question 54

Essay

A pension plan promises to pay $75,000 at the end of each year of the retirement period.
Required:
Compute the funds required to fund this pension plan at the start of the retirement period assuming:
a. discount rate of 9% and a retirement period of 30 years; or
b. discount rate of 9% and a retirement period of 40 years.


Definitions:

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