moodle-2017-2018..caistatela.edu ON-LINE STATE LA Moodle 2017-2018 Use the table
ID: 2784664 • Letter: M
Question
moodle-2017-2018..caistatela.edu ON-LINE STATE LA Moodle 2017-2018 Use the table below to answer the following questions: Present Value of an Annuity o 1 Future Value of an Annuity o 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 3 2.7751 2.7232 2.5771 2.4869 3.1216 3.1525 3.2464 3.3100 3.8299 3.5460 3.3121 3.1699 42465 4.3101 4.5061 4.6410 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 5.2421 5.0757 6229 4.3553 66330 68019 73359 77156 6.0021 5.7864 5.2084 48684 7.8983 8.1420 8.9228 9.4872 6.7327 6.4632 5.7466 5.3349 9.2142 95491 10.6366 11.4359 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 8.1109 7.7217 6.7101 6.1446 12.0051 12.5779 144868 15.9374 10 Aicia gets a yeary aimony payment from homes go for $650,000 and are expected ex toappreciate atthe mation rate of 3%. How much should Alicia put away into an investment each yer tron her ex-husband and wants to save enou, to put a 20% down payment on a home n 3 years, Median the infiation rate She can get a 8% return a year? Select one A $27,099 B. $55.122 C. $43,758 D. $21,416 MacBook AiExplanation / Answer
Value of home today = $650,000
Value of home after 3 year = $650,000 × (1 + 3%) ^ 3
= $65,000 × 1.0727
= $710,272.55.
Value of home after 3 year will be $710,272.55.
He saves for 20% down payment.
So downpayment = $710,272.55 × 20%
= $142,054.51.
Total amount required to pay downpayment is $142,054.51.
From Annuity table, Future value of annuity at 8% for 3 year is 3.2464.
So value of annual saving = $142,054.51 / 3.2464
= $43,758.
Value of annual saving is $43,758.
Option (C) is correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.