What would the revised annual pension payment be

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Problem 1: A pension fund has assumed that the average life of a member on retirement is 12 years. On this basis, and assuming the fund can earn 6 per cent on its assets, it has determined that it is able to fund an annual pension payment of £15,000 per annum. What would the revised annual pension payment be if the average life of a member was 16 years, that is the payments are made over 16 rather than 12 years.

Reference no: EM132949225

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