Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an annuity. He agreed to pay equal annual payments, the payment was made on his 26th birthday and the last was made on his 55th birthday. At present, Ed is receiving a yearly income of P120,000 per which he started receiving on his 56th birthday. Compute for the annual amount that he paid for the annuity if interest rate is 10%.
Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an annuity. He agreed to pay equal annual payments, the payment was made on his 26th birthday and the last was made on his 55th birthday. At present, Ed is receiving a yearly income of P120,000 per which he started receiving on his 56th birthday. Compute for the annual amount that he paid for the annuity if interest rate is 10%.
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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Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an annuity . He agreed to pay equal annual payments, the payment was made on his 26th birthday and the last was made on his 55th birthday. At present, Ed is receiving a yearly income of
P120,000 per which he started receiving on his 56th birthday. Compute for the annual amount
that he paid for the annuity if interest rate is 10%.
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