The percentage of income that has to be contributed by Person X every year in order to fund his retirement. Introduction: The present value is an amount that an individual has to make an investment at present in order to generate the cash flow in future. The present value of the cash flows can be computed by adding the cash flow of every stream.

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Chapter 4, Problem 46P

Summary Introduction

To determine: The percentage of income that has to be contributed by Person X every year in order to fund his retirement.

Introduction:

The present value is an amount that an individual has to make an investment at present in order to generate the cash flow in future. The present value of the cash flows can be computed by adding the cash flow of every stream.

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