What amount should the payments be to establish the $ 4,564,992 Alan the Tank Foundation values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)
What amount should the payments be to establish the $ 4,564,992 Alan the Tank Foundation values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)
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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Alan Kaminski just received a signing bonus of $ 1,600,000. His plan is to invest this payment in a fund that will earn 10%, compounded annually. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
Click here to view the factor table.
https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
![**Investment Calculation Scenario**
Instead of investing the entire $1,600,000, Alan invests $640,000 today and plans to make 11 equal annual investments into the fund beginning one year from today. What amount should the payments be to establish the $4,564,992 Alan the Tank Foundation at the end of 11 years? *(Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 0 decimal places, e.g. 458,581.)*
**Payment Calculation:**
Payments: $ [Input Box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2464a114-c9af-41c5-aceb-8df3482bf0f4%2F9164dc00-a4e3-4096-86d7-b749f445a81e%2F9a536g_processed.png&w=3840&q=75)
Transcribed Image Text:**Investment Calculation Scenario**
Instead of investing the entire $1,600,000, Alan invests $640,000 today and plans to make 11 equal annual investments into the fund beginning one year from today. What amount should the payments be to establish the $4,564,992 Alan the Tank Foundation at the end of 11 years? *(Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 0 decimal places, e.g. 458,581.)*
**Payment Calculation:**
Payments: $ [Input Box]
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