2. Jane Evans receives payments of $900 at the beginning of each month from a pension fund of $72,500. Interest earned by the fund is 6.3% compounded monthly. a. What is the number of payments Jane will receive? (3 marks) b. What is the size of the final payment? (3 marks)
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Jane receives payments of $900 at the beginning of each month from a pension fund of $72,500. The interest rate is 6.3% compounded monthly. Given: - Payment (PMT) = $900 - Present Value (PV) = $72,500 - Monthly interest rate (i) = 6.3% / 12 = 0.525% = 0.00525 We Show more…
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