ZuoTi.Pro
Question

Hal Thomas wants to establish a savings fund from which a community organization could draw $890...

Hal Thomas wants to establish a savings fund from which a community organization could draw $890 a year for 20 years. If the account earns 3 percent, what amount would he have to deposit now to achieve this goal? Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

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

=890[1-(1.03)^-20]/0.03

=890*14.877

=$13240.53

0 0
Add a comment
Know the answer?
Add Answer to:
Hal Thomas wants to establish a savings fund from which a community organization could draw $890...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Please include steps. Thanks. Thanks. 203-10 calculating Present Value of a Savingsfund Hal Thomas wants to...

    Please include steps. Thanks. Thanks. 203-10 calculating Present Value of a Savingsfund Hal Thomas wants to establish a savings fund from which a community organization. Coulddraw $1,000 a year for 20yrs. If the account earn, 2%, what amount would he have to deposit now to achievenis goal? L03-12 Fyture Value of Savings Kara Delaney receveda $ 4000 af for or adulatio from her Oilcle. She deposits the entire amount ilgu account paying 8% What will be the value of ths...

  • Chris Jones wishes to have $400,000 in a retirement fund 25 years from now. He can...

    Chris Jones wishes to have $400,000 in a retirement fund 25 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use next table to solve the following problems. A. If he can earn 7 percent on his investments, how much must Chris deposit today to create the retirement fund? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. $   Calculate your answer...

  • Starr Company decides to establish a fund that it will use 4 years from now to...

    Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $98,000 initial contribution to the fund and plans to make quarterly contributions of $54,000 beginning in three months. The fund earns 12%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final...

  • Austin Miller wishes to have $400,000 in a retirement fund 25 years from now. He can...

    Austin Miller wishes to have $400,000 in a retirement fund 25 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use next table to solve the following problems. If upon retirement in 25 years, Austin plans to invest $400,000 in a fund that earns 5%, what is the maximum annual withdrawal he can make over the following 20 years? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate...

  • Adams Quincy wants to withdraw $31,300 each year for 12 years from a fund that earns...

    Adams Quincy wants to withdraw $31,300 each year for 12 years from a fund that earns 6% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end enter a dollar amount rounded to 0 decimal places First withdrawal immediately enter a...

  • Edward Lewis is 30 years and wants to retire when he is 65. So far he...

    Edward Lewis is 30 years and wants to retire when he is 65. So far he has saved (1) $5,570 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,080 in a money market account in which he is earning 5.25 percent annually. Edward wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...

  • David Davis is 30 years and wants to retire when he is 65. So far he...

    David Davis is 30 years and wants to retire when he is 65. So far he has saved (1) $5,670 in an IRA account in which his money is earning 8.3 percent annually and (2) $5,850 in a money market account in which he is earning 5.25 percent annually. David wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...

  • Richard Miller is 30 years and wants to retire when he is 65. So far he...

    Richard Miller is 30 years and wants to retire when he is 65. So far he has saved (1) $5,600 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,040 in a money market account in which he is earning 5.25 percent annually. Richard wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...

  • Daniel Jackson is 30 years and wants to retire when he is 65. So far he...

    Daniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an IRA account in which his money is earning 8.3 percent annually and (2) $5,590 in a money market account in which he is earning 5.25 percent annually. Daniel wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...

  • Brief Exercise 6-10 Alan Quincy wants to withdraw $32,900 each year for 10 years from a fund that earns 4% interest...

    Brief Exercise 6-10 Alan Quincy wants to withdraw $32,900 each year for 10 years from a fund that earns 4% interest Click here to view factor tables How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and Final answers to o decimal places, e.g.458,581.) First withdrawal at year-end First withdrawal immediately LINK TO TEXT

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT