Question

find the present value

Find the present value PV of the annuity account necessary to fund the withdrawal given. Hint [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $800 per month for 20 years, if the account earns 2% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV = $

Answer 1

Date: Page No. Given Monthly with chawn - rate of Interest - 27. Per annum Interest compounded monthly + poresent value of fund to be deposited to get 800 per month and 10000 eubles 20 years is - : 800 C tofat Here + 10000 2 (ltin n = No. of Payments in a posied = 20x12 = 240 Date of Internet A ta No. Payments a year = 0.0016666 RAJADHANI

By solving above 240) 10ooo = 800 ( 1 (1 80.00 666 ) the 0.001666 (1+0.0016667140 800€ 11.4920 + 10000 1.49o 0.001666 800 (6.3293) + 6706 0.001666 158133 +6706 164838 (Appoor)

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Page No. Griven Monthly with dawn - 800 date of Intense - 24 Pur Annum Interest.compounded monthly Poesent value of fund to be deposited to get soo per month and 10000 cutter 20 years is tokat 800 1oooo Itin thre n = No. of Payments in a period = 20x 12 = 240 rate of Interet -0.0016 N0.4 Payments in a year RAJADHI

By Solving above 10000 800 / (1+0.dove 800 (140.00 10000 (1+0.0016240 / 0.0016 = 800/ 1 - 1.467) + toooo 1.467 od os o ostis 0.0016 cox or s 800 ( 8.318) + 6816 rool 0.0016 154000 +6816 19165816 509 Ooon po - 01 Sexo 3 30/0 - DOW)