Question

Bombay transport limited purchase on first april 2014 from delhi motors five trucks costing rs 300000 each on the hire purchase system. the payment was to be made in follows:-
10% of cash price down
25% of cash price at the end of the four subsequent half year.

Answer 1

Answer:$1,000 at the beginning of each year for 25 years. Starting at age 65, he will make 15 annual withdrawals at the beginning of each year. Assuming that all payments are certain to be made, find the amount of each withdrawal starting at age 65 if the annual interest rate (compounded annually) is 4% during the first 25 years but only 3.5% .