David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw RM5,000 per month from a retirement fund to support his living. He expects to live until the age of 85. How much does he need in the fund the moment he retires assuming that he can earn 8% rate of return per year from the fund?

David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw RM5,000 per month from a retirement fund to support his living. He expects to live until the age of 85. How much does he need in the fund the moment he retires assuming that he can earn 8% rate of return per year from the fund?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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