How much would you have to invest today in the bank at an interest rate of...
How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years, with nothing left in the bank at the end of the 7 years?
Homework Answers
Solution:
Amount to be invested = $5,600 * Cumulative PV factor at 10% for 7 periods
= $5,600 * 4.86842
= $27,263
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