Value of an Annuity Using the appropriate tables, solve each of the following: (Click here to access the time value of money tables to use with this problem.) Round your answers to two decimal places. Required: 1. Beginning December 31, 2017, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually on December 31, 2016. 2. Ten payments of $3,000 are due at annual intervals beginning June 30, 2017. What amount will be accepted in cancellation of this series of payments on June 30, 2016, assuming a discount rate of 14% compounded annually? $ 3. Ten payments of $2,000 are due at annual intervals beginning December 31, 2016. What amount will be accepted in cancellation of this series of payments on January 1, 2016, assuming a discount rate of 12% compounded annually?
Value of an Annuity Using the appropriate tables, solve each of the following: (Click here to access the time value of money tables to use with this problem.) Round your answers to two decimal places. Required: 1. Beginning December 31, 2017, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually on December 31, 2016. 2. Ten payments of $3,000 are due at annual intervals beginning June 30, 2017. What amount will be accepted in cancellation of this series of payments on June 30, 2016, assuming a discount rate of 14% compounded annually? $ 3. Ten payments of $2,000 are due at annual intervals beginning December 31, 2016. What amount will be accepted in cancellation of this series of payments on January 1, 2016, assuming a discount rate of 12% compounded annually?
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
Problem 1PS
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Transcribed Image Text:Value of an Annuity
Using the appropriate tables, solve each of the following:
(Click here to access the time value of money tables to use with this problem.)
Round your answers to two decimal places.
Required:
1. Beginning December 31, 2017, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually on
December 31, 2016.
$
2. Ten payments of $3,000 are due at annual intervals beginning June 30, 2017. What amount will be accepted in cancellation of this series of payments on June 30, 2016, assuming a
discount rate of 14% compounded annually?
$
3. Ten payments of $2,000 are due at annual intervals beginning December 31, 2016. What amount will be accepted in cancellation of this series of payments on January 1, 2016,
assuming a discount rate of 12% compounded annually?
$
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