Pearl Alvarez is investing $323,200 in a fund that earns 8% interest compounded annually. What equal amounts can Pearl withdraw at the end of each of the next 20 years? (Round factor values to 5 decimal places, eg 1.25124 and final answer to O decimal places, eg. 458,581) Yearly withdrawals=

Pearl Alvarez is investing $323,200 in a fund that earns 8% interest compounded annually. What equal amounts can Pearl withdraw at the end of each of the next 20 years? (Round factor values to 5 decimal places, eg 1.25124 and final answer to O decimal places, eg. 458,581) Yearly withdrawals=

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: Current Attempt in Progress Sharon is 40 years old today and she wishes to accumulate $2,360,000 by…

A: It is given that, Sharon want to accumualte $ 2,360,000 by her 65th Birthday. Therefore, Future…

Q: What is the amount of the payments that Steve must make at the end of each of 12 years to accumulate…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Candice Alvarez is investing $385,400 in a fund that earns 11% interest compounded annually. Click…

A: Yearly withdrawals refer to the amount that can be withdrawn from the annuity investment made for…

Q: Kenneth Tyler's VISA balance is $1,487.38. He may pay it off in 12 equal end-of-month payments of…

A: Hi thanks for the question. Post has multiple questions. As per company guidelines expert can answer…

Q: Arish has $25,000 in an investment account and plans to contribute $1,000 at the start of each…

A: Rate of interest The cost associated with borrowing money. Over time, it is given as a percentage…

Q: Chris Spear invested $12,000 today in a fund. To what amount would the investment grow in 3 years if…

A: Here,Amount invested today (PV) is $12,000Time Period (n) is 3 yearsInterest Rate (r) is…

Q: Paul Spear invested $13,000 today in a fund that earns 10% compounded annually. Click here to view…

A: The maturity value of the investment will be future value of amount invested today at the given rate…

Q: Stacy Medavoy will invest $8,480 a year for 20 years in a fund that will earn 11% annual interest.…

A: Variables in the question:PMT=$8480 (a year)N=20 yearsRate=11%Annuity due-Where payment is made at…

Q: Using the appropriate interest table, provide the solution to each of the follofour questions by…

A: The future value of an annuity is the total value of a series of equal cash flows received or paid…

Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…

A: Future value of the money include the amount being deposited and amount of compounding interest…

Q: An investor wishes to accumulate 10,000 in a fund at the end of 19 years. To accomplish this, she…

A: The concept of time value of money will be applied here. The amount of X being deposited in each…

Q: Amy Medavoy will invest $8,160 a year for 20 years in a fund that will earn 8% annual interest.…

A: The future value of the annuity is computed by the business entities so as to determine how much…

Q: Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of…

A: Simple interest is a method of calculating the interest charged on a loan or the interest receivable…

Q: John freeman is investing $8,592 at the end of each year in a fund that earns 3% interest. in how…

A: Amount invested in investment gives interest. After the maturity of investment, amount invested and…

Q: Benjamin invested $14,500 in a fund earning 5% compounded monthly. She withdraws $900 from the fund…

A: Future value is the amount of money an investment will be worth at a future point in time, assuming…

Q: Blake contributed $690 at the end of every 3 months into an RRSP fund earning 2.98% compounded…

A: Annuity = $690Period = 7 yearsNumber of Payments per year = 3/12 = 4Interest rate = 2.98% per annum

Q: Laurence contributed $4,135 at the end of every 6 months to an RRSP fund earning 7.11% compounded…

A: The objective of the question is to calculate the future value of Laurence's RRSP fund, the amount…

Q: Juan invested an amount of $16,000.00 in a mutual fund. After 3 years and 6 months the accumulated…

A: Invested Amount $ 16,000.00 Future Value $…

Q: Give typing answer with explanation and conclusion Patricia made equal deposits at the beginning of…

A: Given details:Deposits per year: 4Total period: 10 yearsAccumulated value: $45,000APR: 4.75% with…

Q: Ann deposits 10,000 into a fund earning an annual simple interest rate of 6%. Mike deposits X into…

A: Ann deposit (P) = 10,000 Interest rate (r) = 0.06 Mike deposit (X) = ? Interest rate (r1) = 0.08…

Q: Mr.Myers has contributed $137.00 at the end of each month into an savings fund paying 5% per annum…

A: The effective annual interest rate describes the actual interest rate associated with an investment…

Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: first thing is calculate semiannual interest rates and semiannual period and from table you can get…

Q: klp.1

A: The objective of the question is to determine the duration for which Mr. Deneau can make withdrawals…

Q: Paige invested the profit of her business in an investment fund that was earning 3.75% compounded…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Cody invested $13,000 in a fund earning 6% compounded monthly. He withdraws $800 from the fund at…

A: Annuity refers to periodic payment or receipt of equal amount which is paid or received from a fund…

Q: The annual effective interest rate is 6%. Determine X.

A: To determine the value of X, we need to calculate the future value of the monthly deposits made by…

Q: Angela invested $10, 500 into a fund earning 7.75% compounded monthly. She plans to withdraw $850…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Part 1: Answer:To…

Q: withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?

A: Future Value: It represents the compounded amount of the present sum invested over a period of…

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: Miguel contributed $300 at the end of every 3 months into an RRSP fund earning 2.84% compounded…

A: The RRSP stands for registered retirement saving plan. This scheme is created for employees and…

Q: Julia Monroe wants to create a fund today that will enable her to withdraw $27,700 per year for 8…

A: The amount that is required to be invested today can be found by discounting the amount of…

Q: Caleb invested $12,500 in a fund earning 7% compounded quarterly. She withdraws $650 from the fund…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Sarah invests $5,400 in a retirement fund that pays 4.2% interest. Compare the value of the fund…

A: Future value is the value of an investment or asset at a specific date in the future, based on a…

Q: Rose deposits P20,000 into a fund that earns 7.5% interest payable quarterly while Jack deposits at…

Q: Salvatore will contribute $530 to a mutual fund at the beginning of each calendar quarter. a. What…

A: Quarterly compounding rate= ((1+7.9%)^(1/4)-1)=1.9190%Future value can be calculated usingFV (rate,…

Q: Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: A) Ken deposits #100, and today and another $ 200, mw in Five on years into a fund that pays simple…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Holly invested $11,000 in a fund earning 6% compounded quarterly. She withdraws $900 from the fund…

A: Annuity means finite no. of payments which are same in size and deposited or withdrawn in equal…

Q: Shane invested $11,000 in a fund earning 5.5% compounded monthly. He will withdraw $800 from the…

A: Given, Shane invested $11000 in a fund earning 5.5% compounded monthly at the end of first 4 years…

Q: Stephanie Watson plans to make the following investments beginning next year. She will invest $2,886…

A: Future value of a single sum can be calculated by using this formula Future value =PV(1+i)n Where PV…

Q: Laura invested $90 at the end of every month into an RRSP for 13 years. If the RRSP was growing at…

A: Kimberly's InvestmentGiven information:Kimberly wants to receive $4,750 at the end of every 6 months…

Q: Amanda invested the profit of her business in an investment fund that was earning 3.25% compounded…

A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…

Q: Joe Franklin deposits $22,000 in a savingsaccount that pays 6% interest compounded monthly.Three…

A: The future amount is determined by using future amount formula and that formula use the present…

Question

Pearl Alvarez is investing $323,200 in a fund that earns 8% interest compounded annually.

What equal amounts can Pearl withdraw at the end of each of the next 20 years?

(Round factor values to 5 decimal places, eg 1.25124 and final answer to O decimal places, eg. 458,581)

Yearly withdrawals=

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explanation of Annuity.

VIEW

Step 2: Calculation of Annuity.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Hardev
Keisha has $4,400 now and plans on investing it in a fund that will pay her 16% interest compounded quarterly. How much will she have accumulated after 2 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice O O O O $6,021.84 $5,920.64 $4,400.00 $5,104.00 $5,808.00
Serena Medavoy will invest $7,680 a year for 20 years in a fund that will earn 4% annual interest. Click here to view factor tables. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) First payment today First payment at year-end $ +A $
Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest at 10% compounded annually. Required: How much would Samuel have to invest on: January 1, 2019, if the first withdrawal is made on January 1, 2019?
Current Attempt in Progress Amy Alvarez is investing $312,400 in a fund that earns 15% interest compounded annually. Click here to view factor tables. What equal amounts can Amy withdraw at the end of each of the next 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Yearly withdrawals $
1. Emily and Jimmy each make deposits of 150 at the end of each year for 30 years. Starting at the end of the 31st year, Emily makes annual withdrawals of K for 10 years and Jimmy makes annual withdrawals of L for 10 years. Both funds have a balance of 0 after the last withdrawal. Emily's fund earns an annual effective interest rate of 8%. Jimmy's fund earns an annual effective interest rate of 6%. Calculate K-L Solution:
Juliana invested $5000 in a fund at the beginning of every three months for five years. The fund was earning an interest rate of 5% compounded monthly. What was the future value of her investment? Fill in the calculator entries below, including the calculated answer in the appropriate location. BGN/END = N = I/Y = PV = PMT = FV = P/Y = C/Y =
Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound interest of 6%. He intends to continue this for three years after which he will move it to JMMB’s long term fund which pays interest of 8% per annum compounded semi-annually. i. How much would he be able to transfer to JMMB after 3 years? ii. How much money will he have at the end of 8 years from today?
In 1988, your Grandmother left you a trust fund with $10,000 in the account that has been earning 8% on an annual basis since inception. How much is in the trust fund now, based on annual compounding?
Correct answer please
Salvatore will contribute $640 to a mutual fund at the beginning of each calendar quarter. a. What will be the value of his mutual fund after 6 1/2 years if the fund earns 9% compounded annually? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Value of mutual fund $ b. How much of this amount represents investment earnings? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Investment earnings $
Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf