Future value of annuity=Annuity[(1+rate)^time period-1]/rate
180,000=Annuity[(1.09)^12-1]/0.09
180,000=Annuity*20.1407198
Annuity=180,000/20.1407198
=$8937(Approx).
A company estimates that it will need $180,000 in 12 years to replace a machine. If...
A company estimates that it will need $71,000 in 14 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 4.2% compounded monthly, how much should each payment be? The amount of each payment should be$ (Round to the nearest cent.)
1. a) A company estimates that it will need $53,000 in 17 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 4.8% compounded monthly, how much should each payment be? b) American General offers a 8-year annuity with a guaranteed rate of 6.05% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1400 annually over the 8 year period?...
Sebastopol Movie Theater will need $180,000 in 5 years to replace the seats. What deposit should be made today in an account that pays 0.8% compounded semiannually? (a) State the type. O present value of an annuity O present value O sinking fund o ordinary annuity O amortization (b) Answer the question. (Round your answer to the nearest cent.)
1. In order to accumulate enough money for a down payment on a house, a couple deposits $507 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? 2. A company estimates that it will need $125,000 in 16 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 3.3%...
23. a. A couple estimates that they will need to buy a new car in 4 years. They estimate that the car will cost $20,000. They decide to set up a sinking fund by making equal monthly payments into an account paying an annual rate of 5.5% compounded monthly. What is the amount of each payment? a. $321.99 b. $340.85 c. $365.25 d. $373.46 b. Consider a car loan amount of $8,000 for a term of 3 years at 12%...
A butcher shop knows that it must buy a new machine in 5 years. The machine costs $15,000. In order to accumulate enough money for the machine, the shop owner decides to deposit a sum of money at the end of each 6 months in an account paying 5% compounded semiannually. How much should each payment be? The deposits form an ordinary annuity because the deposits are made at the end of each period. Therefore, the formula should be used....
An insurance settlement of $1 million must replace Trixie Eden's income for the next 3 years. What income will this settlement provide at the end of each month if it is invested in an annuity that earns 8.3%, compounded monthly (a) Decide whether the problem relates to an ordinary annuity or an annuity due ordinary annuity O annuity due (1) solve the problem. (Round your answer to the nearest $70836 A state lottery pays $10,000 at the beginning of each...
An insurance settlement of $1 million must replace Trixie Eden's income for the next 35 years. What income will this settlement provide at the end of each month if it is invested in an antity that earns 8.3%, compounded monthly (a) Decide whether the problem relates to an ordinary annuity or an annuity due ordinary annuity annuity due (6) Solve the problem. (round your answer to the nearest cent) 5708336 X Need Help? TAT A couple purchasing a home budget...
16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the compounded amount interest is compounded as follows. a.) Annually b.) Semiannually c.) Quarterly d.) Monthly 17. Find the present value of each compounded amount: a.) $42000 in 7 years, 6% compounded monthly. b) $17,650 in 4 years, 4% compounded quarterly. c.) S 1347.89 in 3 years, 5.5% compounded semiannually. 18. Find the future value of each annuity. a.) S 1288 deposited at the end...
Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4 years. Round to the nearest cent How much should Austin have in a savings account that is earning 4.50% compounded quarterly, if he plans to withdraw $2,400 from this account at the end of every quarter for 9 years? Round to the nearest cent Zachary deposits $350 at the end of every quarter for 4 years and 6 months in a retirement fund at...