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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
- Please answer using GUFSA method and please also use the formulas attached. 1. Mario would like to save P3,000 at the end of each month, for six months, in a fund that gives 9% interest compounded monthly: How much is the amount or future value of his savings after 6 months? 2. Gus purchased a laptop, and he would like to know the present value of his monthly payment of P3,000 when interest is 9% compounded monthly. How much is the present value of his payments at the end of 6 months? 3. Renato paid P200,000 as down payment for a car. The remaining amount is to be settled by paying P16,200 at the end of each month for 5 years. If interest is 10.5% compounded monthly what is the cash price of his car? 4. In order to save for her high school graduation, Mariglenn decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly how much will her money be at the end of 6 years? 5. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If…Identify whether the given problem illustrates a simple or general annuity and then solve. 3. On a girl’s 10th birthday, her father started to deposit ₽5,000 quarterly at the end of each term in a fund that pays 1 5 compounded monthly. How much will be in the fund on his daughter’s 17th birthday? 4. The buyer of a lot pays ₽50,000 cash and ₽10,000 every month for 10 years. if money is 8% compounded monthly, ho much is the cash value of the lot?Abby Mia wants to know how much must be deposited in her local bank today so that she will receive yearly payments of $18,000 for 20 years at a current rate of 9% compounded annually. (Use the tables found in the textbook.) A. $1,085.82 B. $163,313 C. $1,463.13 D. $164,313
- Use the formula for the value of an annuity to solve:To offer scholarship funds to children of employees, a company invests $15,000 at the end of every three months in an annuity that pays 9% compounded quarterly. a. How much will the company have in scholarship funds at the end of ten years? b. Find the interest.Round answers to the nearest dollar.Marie bought a laboratory equipment with P25,000 down payment plus 18 moths monthly payment of P2,500 each. If interest was computed at 9% compounded monthly,how much was the cash value if the first installment payment was made at the end of 6 moths? What kind of annuity is described in the problem? A.Annuity Due B.Ordinary annuity C.deferred annuity D.General annuity What is the answer to the question of the problem? A.P24,494.40 B.P49,494.40 C.P82,179.92. D.P90,500Mrs. Quiton deposited Php 120,000.00 into a college fund at the beginning of every month for 10 years . The fund earns 9% annual interest , compounded monthly . She paid at the end of the month . How much is in the account right after the last deposit ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Determine the present value of the deposit. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00