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2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make ann deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount. Table, Excel, or calculator function: Payment: Future value: n= j= < Required 1 Required 2 > Show less A

2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make ann deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount. Table, Excel, or calculator function: Payment: Future value: n= j= < Required 1 Required 2 > Show less A

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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prizes. (1) 586,000 cash immed $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year ar annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make ann deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount. Table, Excel, or calculator function: Payment: Future value: n= i= < Required 1 Required 2 > Show less A
Transcribed Image Text:prizes. (1) 586,000 cash immed $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year ar annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make ann deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount. Table, Excel, or calculator function: Payment: Future value: n= i= < Required 1 Required 2 > Show less A
Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $86,000 cash immediately, (2) $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year annual annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 You recently won a lottery and have the option of receiving one of the following three prizes: (1) $86,000 cash immediately, (2) $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year annual annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount. Option 1 Option 2 Annuity Payment Option 3 Which option should you choose? PV Annuity + + ++ Immediate Cash - . $ $ $ Bemuine PV Option 0 0 0 Show less A
Transcribed Image Text:Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $86,000 cash immediately, (2) $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year annual annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $170,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 You recently won a lottery and have the option of receiving one of the following three prizes: (1) $86,000 cash immediately, (2) $32,000 cash immediately and a six-year annual annuity of $9,200 beginning one year from today, or (3) a six-year annual annuity of $17,400 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount. Option 1 Option 2 Annuity Payment Option 3 Which option should you choose? PV Annuity + + ++ Immediate Cash - . $ $ $ Bemuine PV Option 0 0 0 Show less A
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