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 at 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 at 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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