going rate is 4.45% how much can i deposit today in order to establish an annuity...

Question

Question

going rate is 4.45% how much can i deposit today in order to establish an annuity where i can withdraw 5,000 a year per year for the next 18 years?

Answer 1

Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=5,000[1-(1.0445)^-18]/0.0445

=5,000*12.20858724

=$61042.94(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

How much should you deposit today in order to withdraw $5,000 each year for 7 years?...

How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 years from now and your deposit will earn 4% interest.
How much money would you have to deposit today in order to have $5,000 in four...

How much money would you have to deposit today in order to have $5,000 in four years if the discount rate is 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Amount of deposit
How much money would you have to deposit today in order to have $5,000 in five...

How much money would you have to deposit today in order to have $5,000 in five years if the discount rate is 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

If you deposit $4,000 4 years from today, how much can you withdraw 10 years from...

If you deposit $4,000 4 years from today, how much can you withdraw 10 years from today if interest is 7 percent per year compounded annually? $: Round entry to the nearest dollar. Tolerance is t3.
(Present value of complex cash flows) How much do you have to deposit today so that...

(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $13,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $26,000 in the last year (period 15)? Assume an interest rate of 6 percent. The amount of money you have to deposit today is $ (Round to the nearest cent.)
How much do you have to deposit today so that you can withdraw $10,000 a year...

How much do you have to deposit today so that you can withdraw $10,000 a year from years 11 through 13, $15,000 a year from years 14-20, plus an additional amount of $20,000 in year 20. Assume an interest rate of 5% compounded annually.

Time Value of Money Calculation How much do you have to deposit today so that beginning...

Time Value of Money Calculation How much do you have to deposit today so that beginning 11 years from now you can withdraw $10,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $15,000 in that last year (period 15)? Assume an interest rate of 9%. Please show steps on how to work on calculator
Show step by step how to solve Correct ANSWERS: 6-2 $15,691.28 6-3 $533,333.33 6-4 $4,375.00 (6-2)...

Show step by step how to solve Correct ANSWERS: 6-2 $15,691.28 6-3 $533,333.33 6-4 $4,375.00 (6-2) You are planning to make a series of deposits for an anticipated expense in the future. You will deposit $5,000 next year, $4,000 in five years, and $3,000 eight years from today. If the interest rate is 4.50%, how much will you accumulate in ten years? (6-3) You want to establish a perpetuity that will pay $20,000 per year forever. If the rate is...
How much money would you have to deposit today in order to have $2,000 in three...

How much money would you have to deposit today in order to have $2,000 in three years if the discount rate is 6 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) what is the amonunt of deposit ??

How much money would you have to deposit today in order to have $3,000 in four...

How much money would you have to deposit today in order to have $3,000 in four years if the discount rate is 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))