Corporate Fin Focused Approach
5th Edition
ISBN: 9781285660516
Author: EHRHARDT
Publisher: Cengage
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11. If $10,000 is invested today in an account of Faisal Islamic Bank of Egypt that earns interest at a
rate of 12.5%, what is the value of the equal withdrawals that can be taken out of the account at
the end of each of the next six years if the investor plans to deplete the account at the end of the
time period?
A. $2,466.
B. $2,604.
C. $2,750.
12. An investor is to receive a 15-year, $8,000 annuity , with the first payment to be received today.
At an 11% discount rate, this annuity's worth today is closest to:
A. $55,855.
B. $57,527.
C.$63,855.
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