Corperate Finance

Assume that your father is now 55 years old and plans to retire after 5 years from now.

He is expected to live for another 15 years after retirement. He wants a fixed retirement

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income of Rs. 1,00,000 per annum. His retirement income will begin the day he retires,

5 years from today, and then he will get 14 additional payments annually. He expects to

earn a return on his savings @ 10% p.a., annually compounding. How much (to the

nearest of rupee) must your father save today to meet his retirement goal?