Question

Answer All 5 please!

1.Mel plans to save 13,800 dollars per year for 5 years. His first savings contribution is expected in 1 year. He then plans to withdraw 16,800 dollars per year for as long as he can. Mel expects to earn 8.5 percent per year. How many payments of 16,800 dollars can Mel expect to receive if his first annual payment of 16,800 dollars is received in 5 years?  Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

2.Chen plans to save 16,700 dollars per year for 5 years. His first savings contribution is expected later today. He then plans to make withdrawals for 4 years. How much can Chen expect to withdraw each year if he expects to earn 14.49 percent per year, he makes equal annual withdrawals, and his first withdrawal is made in 6 years?

3.April wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save 24,000 dollars per year for 6 years. Her first savings contribution is expected later today. How much can the fund be expected to provide each year for scholarships if the fund is expected to earn 11.72 percent per year, make equal scholarship payments forever, and make its first scholarship payment in 7 years?

4.Tim wants to have 125,844 dollars in 4 years from today. He expects to earn a return of 7.18 percent per year. Tim plans to make regular savings contributions of X per year for 4 years, with the first of these regular savings contributions made later today. In addition, Tim expects to make a special savings contribution of 11,100 dollars in 2 years from today. What is X, the amount of Tim’s regular savings contribution?

5.Shelby currently has 12,800 dollars saved and plans to make annual savings contributions of 11,200 dollars. Her first annual savings contribution is expected in 1 year. Shelby expects to earn 11.61 percent per year. How many contributions of 11,200 dollars does Shelby need to make in order to have 116,605 dollars?

Answer 1

1)

	A/c balance after 5 years	P×[(1+r)^n-1]÷r
	Here,
A	Interest rate per annum	8.50%
B	Number of years	5
C	Number of payments per per annum	1
A÷C	Interest rate per period ( r)	8.50%
B×C	Number of periods (n)	5
	Payment per period (P)	$                                      13,800
	A/c balance after 5 years	$                                81,770.14
		13800×((1+8.5%)^5-1)÷8.5%

Hence, He can withdraw $16,800 for 5.89 years