ities and Sinking Funds Kevin open an anquity aknhlpemens of $260.00 paid at t e
ID: 2615010 • Letter: I
Question
ities and Sinking Funds Kevin open an anquity aknhlpemens of $260.00 paid at t end of each month for l How mach is in the account at the end of the 11 years? Round to 2 decimal places.) How mach did Kevin deposit? (Round to 2 decimal places) 1) to withdrawal from the annuity moethly payments for 6 years paid at the end of each month. It he is still getting the same interest rate, what would the monthly payment amount be? The monthly payments are What will the total amount that Kevin will be paid Points possible: 1 (Round to 2 decimal places) (Round to 2 decimal places) This is attempt 1 of 3 8/15SubmitExplanation / Answer
Answer a.
Initial Deposit = $4,500
Monthly Deposit = $260
Annual Interest Rate = 4.6%
Monthly Interest Rate = 0.383%
Period = 11 years or 132 months
Accumulated Sum = $4,500*1.00383^132 + $260*1.00383^131 + $260*1.00383^130 + ... + $260*1.00383 + $260
Accumulated Sum = $4,500*1.00383^132 + $260*(1.00383^132 - 1)/0.00383
Accumulated Sum = $7,453.41 + $44,553.92
Accumulated Sum = $52,007.33
Kevin will have $52,007.33 in the account at the end of 11 years.
Answer b.
Total Amount Deposited = $4,500 + $260 * 132
Total Amount Deposited = $38,820
Kevin deposited $38,820
Answer c.
Account balance = $52,007.33
Monthly Interest Rate = 0.383%
Period = 6 years or 72 months
$52,007.33 = Monthly Withdrawal * PVIFA(0.383%, 72)
$52,007.33 = Monthly Withdrawal * (1 - (1/1.00383)^72) / 0.00383
$52,007.33 = Monthly Withdrawal * 62.82116
Monthly Withdrawal = $827.86
Kevin will receive $827.86 every month
Answer d.
Total amount received = 72 * $827.86
Total amount received = $59,605.92
The amount that Kevin will be paid is $59,605.92
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.