The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years from now at an interest rate of 10% per year is closest to: $8,500 B more than $10,000 $9,300 (D) less than s6,500

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (P) = $ 1500 Number of annual payment (n) = 25 Annual interest rate (r) = 10%

Q: An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is 12% per…

A: given, P= R 20,000 A = R45200 r=12%

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Initial investment (I) = $15,000 Interest rate (r) = 0.035 or 3.5% Period (t) = 20 years Future…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: 6.) A debt of $2000 due 4 years from now and $2500 due 6 years from now, is instead to be paid off…

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

Q: The present worth of a deposit of $1000 now and $ every 6 months for 10 years at an interest rate of…

A: Present Value of ordinary annuity = Annuity*(P/A,r,n) Present value annuity due =…

Q: what is the net present value for a $55000 investment (-55000 in year zero) and cash inflows of…

A: Present value of Cash inflow= Annual cash inflow x PVIAF at 4 %, 4 years= $20,000 x 3.5458=…

Q: A loan of $4100 is due in 7 years. If money is worth 4.3% compounded annually, find the equivalent…

A: Loan amount = $4,100Rate = 4.3%Loan period = 7 years

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Present value of annuity due is the sum of present value of all the cash flow that occur at the…

Q: An unavoidable cost may be met by outlays of $70,000 now and $8,000 at the end of every six months…

A: In this we have to calculate present value of cash flow of both option and select the best possible…

Q: An obligation can be settled by making a payment of $1,500 now and a final payment of $11,000 in…

A: The present value represents the current worth of that expected & future cash flow stream.

Q: An ARM is made for $150,000 for 30 years with the following terms: initial interest rate = 7…

A: Amortization:Amortization is a financial word that describes the process of distributing the cost…

Q: Present Value of Amounts Due Assume that you are going to receive $620,000 in 10 years. The current…

A: a. Calculation of Present Value:Identify the future value to be received: $620,000Determine the…

Q: A loan of $3100 is due in 6 years. If money is worth 3.2% compounded annually, find the equivalent…

A: Amount of Loan is $3100The worth of money is 3.2% compounded annuallyTo Find:Equivalent loan payment

Q: R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

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: 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: Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8%…

A: Given: The deposited amount is $4,000 for five years The interest rate is 8% Deposited quarterly…

Q: Please break down step by step how the circled figure was calculated. How did they get 6.41766?…

A: It refers to the current worth or value of a sum of money to be received or paid in the future,…

Q: Calculate the Taxes Payable for the following scenario assuming in all cases a $200,000 investment,…

A: Taxable Payable- Income tax payable is a liability reported for financial accounting purposes. It…

Q: 6. Determine the accumulated balance: $1200 invested in an account that cams interest at an APR of…

A: Future value of the investment  that is compounded continuously can be calculated using the…

Q: (Complex present value) How much do you have to deposit today so that beginning 15 years from now…

A: The PV of future cash flows is used to find out the total actual worth of the cash flows after they…

Q: The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years…

A: Annuity is a series of payments or withdrawals made at periodic intervals. The way this withdrawal…

Q: 12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be…

A: Interest advance = 4% Here, we'll find P at the end of 3 years.

Q: The present sum needed to provide for an annual withdrawal of $5,000 for 15 years beginning 5 years…

A: Present value of would give the equivalent money required today considering the interest rate and…

Q: The present value of $66,000 to be received in two years, at 12% compounded annually, is needed.…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Q: If $33,500 is invested at 6.8% for 30 years, find the future value if the interest is compounded the…

A: Investment = $ 33500 Interest rate = 6.8% Period = 30 Years

Q: What is the present value of the following future payments: (a) $6,000 ten years from now at 9%…

A: The money's time worth concept reveals that any sum of money is worth more currently as compared to…

Q: In a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: What is the paypack period if initial investemnet is - $3700.00 Cash Flow for seven years as follow:…

A: 2. Net Present Value (NPV) NPV is calculated using the formula:NPV = sum (C_t)/(1 + r)^twhere C_t is…

Q: please solve (g), (h )

A: Investment amount (P) = $ 33500 Interest rate (r) = 6.8% Period (t) = 30 Years

Q: please solve (d), (e ), (f)

A: Investment  = $ 33500 Period = 30 Years Interest rate = 6.8%

Q: Find the present value of the following future amount. $500,000 at 9% compounded annually for 25…

A: The present value can be calculated by discounting the future amount.

Q: A loan of R250 000 is secured at an interest rate of 14% p.a. (cm) and will be amortized by equal…

A: Here, Loan amount = R250,000 Interest rate = 14% compounded monthly  Term of loan = 20 years No. of…