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Q: The sum of P1000.00 is invested now and left for 8years, at which time, the principal is withdrawn.…

A: The future value of an amount invested in an account depends on the interest rate and the time…

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: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

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: 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: Assume that time is measured in years and that interest rates are constant.  A cashflow of amount…

A: Present value refers to the current value of a future cash flow or series of cash flows, discounted…

Q: This problem demonstrates the dependence of an annuity's future value on the size of the periodic…

A:

Q: The future value of regular annuity of $2,000 per year for 20 years is $73,888.32. What interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Find the present value of the decreasing annuity necessary to fund a withdrawal of $100 per month…

A: Present Value:- It is the formula through which one can evaluate the worth of future income of the…

Q: Using​ annual, semiannual, and quarterly compounding​ periods, (1) calculate the future value if…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

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

A: The objective of the question is to find the present value (PV) of an annuity account that is…

Q: What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year…

A: present value of a perpetuity stream of cash flows = cash flows at end of year 1/(Discount rate -…

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: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $950,000 now and $775,000, 8 years…

A: In year 0,Cash flow= 950000 + 775000/(1 + 0.11)^8= 1286293.0346

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: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: What is the future value of a lump sum of $1,335, in 17 years, assuming an interest rate of 8.8…

A: Given details are : Present value = $1335 Time period = 17 years  Annual percentage rate = 8.8%…

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: 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: Find the present value PV of the annuity account necessary to fund the withdrawal given. HINT [See…

A: Present value is the worth of a future sum of money at the present date. The present value of…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: The present value of $40,000 to be received in 2 years, at 12% compounded annually, is _____…

A: Present value is today's value of the amount to be received in the future at an interest rate.   In…

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

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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: what amount must be deposited today in order to make quaterly withdrawals of 300 for 15 years where…

A: The quarterly withdrawals are in the form of annuity and the amount that needs to be deposited today…

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: esent amount of 10201 is invested into an account, which can be withdrawn after the end of 30 years.…

A: The equivalent uniform annuity would be equivalent to growing annuity when both present value are…

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: If the present value of an annuity is 38888 dollars, r=3.4% and t=19 years. Assuming annual payments…

A: Annual cash flow amount is calculated using following equation Annual cash flow = PV×r(1-1(1+r)n)…

Q: Find the present value of the following annuities: 1. 100 at time 1 and increasing by 100 annually…

A: 1.                                                  Computation of present value of annuity Year…

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…