The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years from now at an interest rate of 0.12 per year is closest to:

Q: Compute the amount of money to be set aside today

A: Present value means the value of  future money . Future cashflow are discounted at a discounted…

Q: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…

A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: A debt of $4000 due now is to be repaid by a payment of $1,000 in 1 year, a payment of $2,000 in 3…

A: Total debt =$4000 interest rate =6% First payment $1000 in one year  Second payment $2000 in three…

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $825,000 now and $1,000,000, 8…

A: Cost now (C0) = $ 825,000 Cost after 8 years (C8) = $ 1,000,000 Period (n) = 8 Years Interest rate…

Q: A loan of $10,000 today is to be repaid by annual payments of $800 to commence one year from now and…

A: Final payment:The "final payment" represents the concluding installment in a series of financial…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Given: Payment = $1,400 Years = 20 Interest rate = 4%

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: present

A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre…

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: Find the present worth of a future payment of P200,000 to be made in 15 years with an interest of…

A: Future worth of a present value With present worth (PW), effective annual rate (r) and time (n), the…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: Find the present value of $51,250.00 due in 8 years at an interest rate of 4.5% per year compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What are the annual payments for years 1 to 30? What is remaining balance at the end of each year?…

A: Information Provided: Loan amount = $120,000 Year of loan = 30 years Interest rate = 10%

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: Find the periodic payment R required to amortize a loan of P dollars over t years with interest…

A: The periodic amount will be found using excel’s PMT function. It is the minimum amount that must be…

Q: The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years…

A: Annual withdrawal = $2000 Number of annual withdrawal = 20 Years First withdrawal = beginning of 5th…

Q: What is the present value of $3,000 paid at the end of each of the next 77 years if the interest…

A: Annual payments = $3000Number of years = 77Interest rate = 10%To find: present value

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: The objective of the question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Given the down payment of P18,877 and annual payment of 28,657. The number of years is 20 years and…

A: Down payment (DP)= P 18,877 Annual payment (P)  = 28,657 Number of annual payments (n) = 20 Discount…

Q: (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years.

A: In this question we need to compute the future value from following details : Initial deposit =…

Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…

A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…

Q: In a series of payments at the end of the period, the first payment is 200 TL, the second payment is…

A: The first payment is 200 TL. The payment decreased by 20 TL. The annual effective interest rate is…

Q: 2. Find the present value in perpetuity for an investment if payments of $2000 are withdrawn at the…

A: Perpetuity is defined as the perpetual annuity or also known as series of equal but infinite cash…

Q: Compute to the penny the present value of $5,000 dollars to be paid at the end of four years if (a)…

A: Future value is a financial concept that refers to the projected value of an investment or asset at…

Q: Set up an amortization schedule for a $30,000 loan to be repaid in equal installments at the end of…

A: PRINCIPAL (p)= $30,000 n=20 r=20%

Q: Using a 5% annual compound interest rate, what investment today is needed in order to withdraw…

A:

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: The present sum needed to provide for an annual withdrawal of $5,000 for 15 years beginning 5 years…

A: Present value of would give the equivalent money required today considering the interest rate and…

Q: At what annual interest​ rate, compounded​ annually, must ​$520 be invested for it to grow to…

A: Initial amount (I) = $520 Future value (FV) = $1,908.44 Period (p) = 10 years Interest rate (r) = ?…

Q: With a 0.07 interest rate, approximately how much money must be invested today in order to withdraw…

A: Amount invested today = P{[1 - (1 + r)^-n] / r}

Q: a) How many payments of 200 are made? b) What is the amount of the final payment?

A: Under Compound Interest Method, interest rate is applied at the accumulated opening balance of the…

Q: What is the present value of ​$1,000 paid at the end of each of the next 100 years if the interest…

A: Payment = p = $1000Time = t = 100 YearsInterest rate = r = 4%

Q: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: Assume annual compound interest unless stated otherwise. What must be the interest rate in order for…

A: In this question we need to compute the interest rate that will convert $1000 into $2000 in 20 years

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: A loan of 34000 is made at 5% interest, compounded annually. After how many years will the amount…

A: By rearranging the formula below, we need to solve for n. In the formula below:Loan = $34000Amount =…

Q: A deposit of $23844 now at an interest rate of 10% per year will accumulate in 10 years to an amount…

A: Deposit amount = $23844 Interest rate = 10% Period = 10 Years