Deferred Annuities: How much must you invest on January 1, 2014 in order to withdraw $10,000...

Deferred Annuities: How much must you invest on January 1, 2014 in order to withdraw $10,000 each January 1 in years 2020 through January 1 2025 assuming an 8% interest rate?

Solutions

Expert Solution

Hope this will be helpful

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

a) Marcus Jones wants to invest $10,000 on January 1, 2014, so that he may withdraw...

a) Marcus Jones wants to invest $10,000 on January 1, 2014, so that he may withdraw 10 annual payments of equal amounts beginning January 1, 2029. If the fund earns 10% annual interest over its life, what will be the amount of each of the withdrawals? $14,709 $28,402 $10,000 $16,181 b)The Lane Company incurred the following expenditures in January 2016: (1) research and development costs of $510,000 that resulted in a new product that was patented during the year, (2)...

1/ How much must you invest at 7% interest in order to see your investment grow...

1/ How much must you invest at 7% interest in order to see your investment grow to $15,000 in 9 years? Use Appendix B. (Round "PV Factor" to 3 decimal places.) $7,526 $8,160 $7,561 none of these 2/ Ambrin Corp. expects to receive $8,000 per year for 13 years and $9,500 per year for the next 13 years. What is the present value of this 26 year cash flow? Use an 10% discount rate. Use Appendix D and Appendix B....

1- How much must you invest at 11% interest in order to see your investment grow...

1- How much must you invest at 11% interest in order to see your investment grow to $31,000 in 13 years? Use Appendix B to calculate the answer. $7,399 none of these $7,364 $7,998 2- Sharon Smith will receive $1.03 million in 25 years. The discount rate is 10%. As an alternative, she can receive $94,760 today. Which should she choose? Use Appendix B to calculate the answer. $94,760 today. the $1.03 million dollars in 25 years. she should be...

1. How much should you deposit today in order to withdraw $5,000 each year for 7...

1. How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 year from now and your deposit will earn 4% interest. 2. Which amount is worth more today at 14% interest rate: $1,300 in hand today or $2,500 due in five years? 3. Krystal Magee invested $135,125, 17 months ago. Currently the investment is worth $197,234. Krystal knows that the investment paid interest monthly, but she does not...

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)?

Question