Kate Bwalya wishes to retire in 30 years’ time and has estimatedthat she will require a monthly pension income of K24,000 per monthfor 20 years subsequent to retirement. Kate will contribute to aretirement fund which will enable her to take out a monthly pensionof K24,000 after retirement. The retirement fund is currentlyearning a return of 9% per annum, interest compounded monthly, andthis level is expected to remain unchanged and to be sustainableover the next 50 years. Determine the monthly contribution thatKate is required to make to the retirement fund over the next 30years.
