Juan Reyes inherited P280.000 on his birthday. This he placed in his own pension fund (bank account), which earns interest at 12% compounded annually. He withdraw P450,000 on his 35th birthday to make the initial payment on a house, He drew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund He died at the age of 71, however. just before withdrawing the amount due on that date. How much is left in the fund to be passed on to the heirs at the time of Juan's death?
Juan Reyes inherited P280.000 on his birthday. This he placed in his own pension fund (bank account), which earns interest at 12% compounded annually. He withdraw P450,000 on his 35th birthday to make the initial payment on a house, He drew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund He died at the age of 71, however. just before withdrawing the amount due on that date. How much is left in the fund to be passed on to the heirs at the time of Juan's death?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Juan Reyes inherited P280.000 on his birthday. This he placed in his own pension fund (bank account), which earns interest at 12% compounded annually. He withdraw P450,000 on his 35th birthday to make the initial payment on a house, He drew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund He died at the age of 71, however. just before withdrawing the amount due on that date. How much is left in the fund to be passed on to the heirs at the time of Juan's death?
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