David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw RM5,000 per month from a retirement fund to support his living. He expects to live until the age of 85. How much does he need in the fund the moment he retires assuming that he can earn 8% rate of return per year from the fund?

David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw RM5,000 per month from a retirement fund to support his living. He expects to live until the age of 85. How much does he need in the fund the moment he retires assuming that he can earn 8% rate of return per year from the fund?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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