Example 33 Maude decides to invest in a 25-yearprivate pension scheme, where she willhave to deposit TRY1000 at the start ofcach month. The rate of interest is fixed at8% per annum. Interest is compoundedmonthly.1 Determine the future valueinvestment at the end of the 25 years.After the 25-year period, when shewill have retired, she will receive (accordingto the pension scheme) a monthlypension of TRY1200.b Explain why the investment fund willnever run out of money.herStudents, draw anywhere on this silidelide

Future Value:- It is a method where an entity estimates the worth of present investment in the…

3 Maude decides to invest in a 25-year private pension scheme, where she will have to deposit TRY1000 at the start of each month. The rate of interest is fixed at 8% per annum. Interest is compounded monthly. a Determine the future value of her investment at the end of the 25 years. After the 25-year period, when she will have retired, she will receive (according to the pension scheme) a monthly pension of TRY1200. b Explain why the investment fund will never run out of money.

3 Maude decides to invest in a 25-year private pension scheme, where she will have to deposit TRY1000 at the start of each month. The rate of interest is fixed at 8% per annum. Interest is compounded monthly. a Determine the future value of her investment at the end of the 25 years. After the 25-year period, when she will have retired, she will receive (according to the pension scheme) a monthly pension of TRY1200. b Explain why the investment fund will never run out of money.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Example 3
3 Maude decides to invest in a 25-year
private pension scheme, where she will
have to deposit TRY1000 at the start of
cach month. The rate of interest is fixed at
8% per annum. Interest is compounded
monthly.
1 Determine the future value
investment at the end of the 25 years.
After the 25-year period, when she
will have retired, she will receive (according
to the pension scheme) a monthly
pension of TRY1200.
b Explain why the investment fund will
never run out of money.
her
Students, draw anywhere on this silidel
ide

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