Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $100 per month for 20 years, if the account earns 7% per year

Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $100 per month for 20 years, if the account earns 7% per year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $130/month…

A: Annuity payment = $130No of years = 11 years or 11 * 12 = 132 monthsInterest rate = i = 5% per year…

Q: Find the monthly payment that will yield the future value of $260,000 using an ordinary annuity at…

A: Information Provided: Future value = $260,000 Interest rate = 11% Period = 41 years

Q: given the situation , choose the correct formula to solve the problem: find the future value of an…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where P = Annuity amount i.e. $5000 r = rate of…

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

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

A: To calculate the present value of annuity we will use the below formula Present value =…

Q: Find the future value of a 6-year annuity due with payments of $4,300 and an annually compounded…

A: An annuity is a contract that pays a periodic sum for a predetermined period for a lump-sum amount…

Q: The future value is $ (Round to the nearest cent.)

A: Information Provided: Year of payments = 10 Payments = $33,000 Interest rate = 4%

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

A: The present value of the annuity is the discounted worth that is defined as the process of…

Q: Find the future value of the annuity due. Payments of $600 per quarter for 6 years at 6% compounded…

A: STEP 1 Annuity Due An approach to determine how much money a series of payments will be worth at…

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

A: Here, Withdrawal amount (PMT) is $200 per month Time Duration is 10 years Total time duration is :…

Q: Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound…

A: To Find: Future Value

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

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: Find the future value of the annuity due. Payments of $700 per quarter for 6 years at 5% compounded…

A: Annuity refers to a periodic stream of cash flow occurring in each period (be it a month or a…

Q: Find the future value of a 6-year annuity due with payments of $1,400 and an annually compounded…

A: The future value represents the value of an investment in the future after considering the effect of…

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

Q: Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound…

A: Future value refers to the accumulated sum based on a current deposit. If deposits are made…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

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

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 an annuity

A: Present value of annuity represents the current value of the future payments for an annuity. There…

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: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

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

A: Annuity refers to a fixed and constant cash flow stream. In this case the monthly withdrawals of…

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: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: The concept of time value of money will be used here to solve this question. As per the concept of…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given

A: Present Value of Annuity: It represents the present worth of the future annuity periodic payments…

Q: Raghubhai

A: Step 1: Give n Value for Calculation Compound = Monthly = 12Monthly Payment = p = $800Number of…

Question

$100 per month for 20 years, if the account earns 7% per year

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Working note #:-

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Find the future value of a 10-year annuity due with payments of $23,000 and an annually compounded interest rate of 4%. The future value is $. (Round to the nearest cent.)
Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $200 is deposited monthly for 10 years at 7% per year in an account containing $6,000 at the start
You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8 years and then the remaining payment stay level as the last payment, forever. The annual effective rate of interest is 7.3%. Calculate the present value of this annuity.
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $200 per month for 20 years, if the account earns 2% per year
Calculate the present value of the annuity. (Round your answer to the nearest cent.) $1800 monthly at 6.6% for 30 years.
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $300 per month for 10 years, if the account earns 2% per year and if there is to be $10,000 left in the annuity at the end of the 10 years PV = $
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals Round your answer to the nearest cent.) $300 per month for 20 years, if the account earns 6% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV=5 Need Help? Pe ww
Calculate the present value of annuity with 30 annual payments which pays an initial payment of $1,733.35 at the end of 5 years. Each subsequent annual payment is 4% larger than the previous payment. Assume the effective annual interest rate is 0.065. Give your answer to the nearest dollar.
Find the periodic payments PMT necessary to accomulate the given account in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with quarterly payments for 20 years. PMT = $
Find the monthly payment that will yield the future value of $255,000 using an ordinary annuity at 10.75% interest for 42 years. (Round the answer to the nearest cent.)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 3% per year, with monthly payments for 10 years, if the fund contains $30,000 at the start