latesummerrain
New member
- Joined
- Jun 21, 2013
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- 2
A finance company agrees to pay a retired couple at $15 000 per year pension for the next 20 years, indexed to inflation which is 3.5% p.a.
a) How much will they have paid the couple at the end of the 20 years?
b) Immediately after the 10th annual pension is made, the finance company increases the indexed rate to 4% p.a to match increased inflation. Given these new conditions, how much will the company have paid the couple at the end of the 20 years?
a) How much will they have paid the couple at the end of the 20 years?
b) Immediately after the 10th annual pension is made, the finance company increases the indexed rate to 4% p.a to match increased inflation. Given these new conditions, how much will the company have paid the couple at the end of the 20 years?