You are a pension fund manager. According to your estimates retirees will be paid benefit worth Rs 750000 per year, starting 12 years from now. There will be a total of 20 payments. The discount rate is of 7%. What amount will you need to set aside today so that you can pay the retirees as estimated?

You are a pension fund manager. According to your estimates retirees will be paid benefit worth Rs 750000 per year, starting 12 years from now. There will be a total of 20 payments. The discount rate is of 7%. What amount will you need to set aside today so that you can pay the retirees as estimated?

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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