-17. Jane Frost wants to receive yearly payments of $15,000 for 10 years. How much must...

Question

Question

Answer 1

Answer #1

Amount to be Invested = 88,338.48

PRESENT VALUE = $88,338.48 1-(1+r)^-n Present Value of annuity = P P r n = = = 15,000 11% 10 1- (1+0.11)^-10 = 15,000 0.11 P

Answer 2

Similar Homework Help Questions

Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit...

Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
Ingrid wants to buy a $22,000 car in eight years. How much money must she deposit...

Ingrid wants to buy a $22,000 car in eight years. How much money must she deposit at the end of each quarter in the account paying 5.2% interest compounded quarterly so that she will have enough to pay for her car?
Ingrid wants to buy a $22.000 in 7 years. How much money must she deposit the...

Ingrid wants to buy a $22.000 in 7 years. How much money must she deposit the end of each cure paying 55 compounded quatory so that she will have tough to pay for her car? How much money must she deposit at the end of each quarter Round to the nearest contas neded)

a) You just won $1,000,000 on the lottery. If you chose the payments over 20 years...

a) You just won $1,000,000 on the lottery. If you chose the payments over 20 years ($50,000 per year) how much is the value of the up-front cash option (present value) if the state uses a 6% rate of return (interest)? b) Katey needs $10,000 in 4 years to use as a down payment on a house. What amount must she invest today if her investment earns 10%? c) Linda invested $1500 today in a fund that earns 8% annually....
Jim Green wants to receive $5,000 each year for the next 14 years. Assume a 13%...

Jim Green wants to receive $5,000 each year for the next 14 years. Assume a 13% interest rate, compounded annually. How much must Jim invest today?
How much must Susie invest today to have $20,000 in 6 years in an account with...

How much must Susie invest today to have $20,000 in 6 years in an account with an interest rate of 10% compounded annually? How much less would she have to invest if the interest compounded monthly?

Ingrid wants to buy a $20,000 car in 7 years. How much money must she deposit...

Ingrid wants to buy a $20,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.1% compounded quarterly so that she will have enough to pay for her car?
Ingrid wants to buy a $19,000 car in 7 years. How much money must she deposit...

Ingrid wants to buy a $19,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.6% compounded quarterly so that she will have enough to pay for her car?
Short question answers 1. Khawla wants to have AED 900,000 in cash to buy a new car 4 years from today. She expects...

Short question answers 1. Khawla wants to have AED 900,000 in cash to buy a new car 4 years from today. She expects to earn 9 percent per year, compounded annually, on her savings. How much should she deposit today to meet this purpose? 2. What is the future value of AED 85,000 deposited for 7 years at 10 percent interest compounded annually?

Starting on the day he retires, Bob wants to receive payments of 2000 at the beginning...

Starting on the day he retires, Bob wants to receive payments of 2000 at the beginning of each month for 20 years. How much money should he deposit each quarter starting today if he plans to retire in 35 years and he makes his last deposit three months before his retirement date? Assume that the account earns a nominal rate of 7% per year compounded quarterly for the first 35 years and then a nominal rate of 5%per year compounded...