You would like to make retirement more comfortable by annual pension payments which are paid at the end of each year. Th

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You Would Like To Make Retirement More Comfortable By Annual Pension Payments Which Are Paid At The End Of Each Year Th 1 (87.47 KiB) Viewed 43 times

You would like to make retirement more comfortable by annual pension payments which are paid at the end of each year. The initial payout of 10,000 euros is supposed to increase by 4% annually, the flat interest rate for all maturities is set at 6%. Assume that you will live to see a maximum of 30 pension payouts and would like to use up your capital until that point as you would not like to leave anything to your ungrateful family. What amount do you need to have saved one year prior to start of the yearly payoffs? (Hint: The present value of the annuity can be calculated using two perpetuities) Select one: A. 278,634 B. 358,647 C. 217,646 D. 254,334