Question

ount of money a person must deposit 3 vears from now in order to be able to raw $10.000 per year for 10 years beginning 15 years from now at an interest rate of 11% per year is closest to: s 10,000 P-10,000( P/A. 1 1%,10) (P/F.11%12) a. Ps ?17, P=0,000(%,117,11) b. P-10.000(P/A.11%,10) (P/F.11%11) ns 12 P= 10.0000 PA. I 190. I l ) (PF. I 1%12) d. c. P= 10,000( P/A,11%, I l ) (P/F.11961 1) 8. How much money would you have to deposit for 4 consecutive years starting 3 years from now if you wanted to be able to withdraw $50,000 twelve years from now? Ass interest rate is 8% per year. a. Less than $7.000 b. $8,600 c. $10,500 d. Over $11.000 Calculate the present worth of the following series of incomes and expenses if the interest rate is 8% per year 9. Year Income, $ Expense, $ 12.000 800 900 1,000 100 200 7-11 a. Less than $15,600 b. $15.600 c. $16,000 d. $16.275 10. An individual borrows $8000 at an interest rte of 12% per year and he desires to repay the money with five equal annual payments, the first payment to be made 3 years after receiving the money. What should be the size of the payments? Less than $2,775 a. b. $2,785 c. $3120 d. Over $3,125 11. You have just graduated from college and plan to begin a retirement fund. It is your desire to withdraw money every year for 30 years starting 25 years from now. The retirement fund earns 6% interest. What uniform annual amount will you be able to withdraw when you retire in 25 years if you deposit $1.000 per year in years 1 thru 20 and nothing thereafter? a. A. 1000( F/A,600.20)( F/P.6%.5)(A/P.6%.30) b. A-1000( F/A,6%,21)(F/P6%,5)(AP.6%,30) c. A 1000( F/A.6%,21XFP,6%.4)(AP,6%.30) d. A 1000( F/A.6%.20)( F/P,6%,4)( A/P.6%,30)