Juan Reyes inherited P280,000 on his 30th birthday. This he placed in his own pension fund (bank account) which earns interest at a rate of 12% compounded annually. He withdrew P450,000 on his 35th birthday to make the initial payment on a house. He withdrew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund. He died at the age of 71, however just before withdrawing the amount due on that date. How much is left in the fund to be passed on the heirs at the time of Juan’s death?

Juan Reyes inherited P280,000 on his 30th birthday. This he placed in his own pension fund (bank account) which earns interest at a rate of 12% compounded annually. He withdrew P450,000 on his 35th birthday to make the initial payment on a house. He withdrew his annual uniform payment for the pension fund on his 65th birthday and planned to make 20 such withdrawals so as to just exhaust the fund. He died at the age of 71, however just before withdrawing the amount due on that date. How much is left in the fund to be passed on the heirs at the time of Juan’s death?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 52P

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