John deposits RM10,000 at the beginning of each year for ten years, into a financial instrument offering dividend rate of 10% per year. He then withdraws annualized level payments of P starting at the beginning of eleventh year and continuing for 15 years later, at dividend rate of 5% per year. At the end of 25 years, the fund balance remains zero. 1. Calculate the present value of the annualized deposits he makes. ». Calculate the annualized level payment of withdraw, P. . Determine the balance of the fund at the end of 15 years starting from the yea he makes his first deposit, just before the next sixth withdraw is being made

John deposits RM10,000 at the beginning of each year for ten years, into a financial instrument offering dividend rate of 10% per year. He then withdraws annualized level payments of P starting at the beginning of eleventh year and continuing for 15 years later, at dividend rate of 5% per year. At the end of 25 years, the fund balance remains zero. 1. Calculate the present value of the annualized deposits he makes. ». Calculate the annualized level payment of withdraw, P. . Determine the balance of the fund at the end of 15 years starting from the yea he makes his first deposit, just before the next sixth withdraw is being made

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 12E

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