By how much will it have to increase its annual contribution

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Question - A company's pension fund advisors have estimated that in ten years from now the fund will have a deficit of £18 million. The company has decided to increase its contributions over the next ten years to eliminate this deficit. It plans to increase its annual contributions to the pension fund by a constant annual amount. By how much will it have to increase its annual contributions to meet its obligations, if it is anticipated that the pension fund's assets can earn 6 per cent per annum?

Reference no: EM133030835

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