How much would you have to invest today to be able to withdraw $4,295 each month,...

How much would you have to invest today to be able to withdraw $4,295 each month, for 50 months, (starting next month), if your investments earn 3.43% APR (compounded monthly)?

Expert Solution

Given,

Monthly withdrawal = $4295

Number of months (n) = 50

APR = 3.43% or 0.0343

Solution :-

Monthly rate (r) = 0.0343/12 = 0.0028583333

Present value = Monthly withdrawal/r x [1 - (1 + r)^-n]

= $4295/0.0028583333 x [1 - (1 + 0.0028583333)^-50]

= $4295/0.0028583333 x [1 - (1.0028583333)^-50]

= $4295/0.0028583333 x [1 - 0.86700303498]

= $4295/0.0028583333 x 0.13299696502 = $199844.42

You would have to invest $199844.42 today.

jeff jeffy answered 2 years ago

How much would you have to invest today to be able to withdraw $4,956 each month,...

How much would you have to invest today to be able to withdraw $4,956 each month, for 45 months, (starting next month), if your investments earn 4.14% APR (compounded monthly)?

How much would you have to invest today to be able to withdraw $3,170 each month,...

How much would you have to invest today to be able to withdraw $3,170 each month, for 19 months, (starting next month), if your investments earn 4.57% APR (compounded monthly)? How much would you have to invest today to be able to withdraw $9,123 each month, for 8 months, starting 7 months from now, if your investments earn 4.6% APR (compounded monthly)?

How much would you have to invest today to be able to withdraw $6,814 each month,...

How much would you have to invest today to be able to withdraw $6,814 each month, for 6 months, starting 9 months from now, if your investments earn 5.37% APR (compounded monthly)?

How much would you have to invest today to be able to withdraw$9,123 each month,...

How much would you have to invest today to be able to withdraw $9,123 each month, for 8 months, starting 7 months from now, if your investments earn 4.6% APR (compounded monthly)?

How much would you have to invest today to be able to withdraw $6,779 each month,...

How much would you have to invest today to be able to withdraw $6,779 each month, for 10 months, starting 7 months from now, if your investments earn 6.03% APR (compounded monthly)?

How much would you have to invest today to receive $5000 each year, at the beginning...

How much would you have to invest today to receive $5000 each year, at the beginning for 10 years at 8 percent?

How much would you have to invest today to receive: a. $100,000 in 6 years at...

How much would you have to invest today to receive: a. $100,000 in 6 years at 12 percent? b.$100,000 in 15 years at 12 percent? c.$10,000 at the end of each year for 25 years at 12 percent d.$75,000 at the end of each year for 25 years at 12 percent?

How much would you have to invest today to receive a. $15,000 in 8 years at...

How much would you have to invest today to receive a. $15,000 in 8 years at 6 percent? b. $20,000 in 12 years at 8 percent? c. $6,000 each year for 5 years at 10 percent? d. $50,000 each year for 20 years at 12 percent?

How much would you have to invest today to receive the following? Use Appendix B and...

How much would you have to invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $12,500 in 7 years at 11 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $16,100 in 15 years at 10 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c....

How much would you have to invest today to receive the following? Use Appendix B or...

How much would you have to invest today to receive the following? Use Appendix B or Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $12,250 in 6 years at 10 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $16,000 in 14 years at 12 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c....

Question