Read the question carefully and give me right solution according to the question. IRR =17.3% A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 isinvested in the fund at the start of each year, beginning immediately and continuing up to andincluding the investment at the start of year 5, what is the annual interest on this investment?What would be the equivalent uniform annual amount if the money was invested at the end ofeach year instead of the beginning? Clearly show your working methods and calculations.

Annuity due are those payments that are made at the beginning of the year and ordinary annuities are…

Answered: A consultant advises that a fund pays…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.
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Question 2 A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.
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