Fahrin plans to withdraw his money RM 10,000 each year from his savings account at theend of year 10 and Year 11. To make sure these withdrawals are possible, FOUR (4)annuity amounts (A) will be deposited in a bank at the end of year 2, 3, 4, and 5. The bank'sinterest rate is 12% per year.(a) Draw a cash-flow diagram for this situation

A cash flow diagram consists of series of cash inflows and cash outflows expressed over a period of…

Answered: (a) Draw a cash-flow diagram for this…

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(a) Draw a cash-flow diagram for this situation

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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A person wishes to accumulate Php500,000 over a period of 15 years in his savings account, what annual payments should be made into his savings account to be able to attain this money with an interest rate of 8% compounded quarterly. Then on the 16th year and onwards, the person wishes to withdraw an amount for his retirement until he dies, what is the value of this retirement amount? Draw the cash flow diagram.
Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? Draw the cash flow diagram. 2.
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