11. You have just graduated from college and plan to begin a retirement fund. It

Question

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 I thru 20 and nothing thereafter? a. A. 1000(F/A.6%,20)(F/P,6%,5)(A/P,690,30) b. Aa-1000(PA6%,21)(F/P,6%.5)(AP,6%,30) C. A-1000(FA.6%,21)(F/P5%,4)(AP,6%.30) d. A-1000(F/A,6%,20)(F/P,6%4)(AP,6%,30) 12. Caleulate the value of x in the cash flow shown below such that the equivalent total value in year 4 is $9,000 using an interest rate of 12% per year Cash Flow, $ Year 200 200 200 200 200 CE 2326 Homework # 1 Due Date: 09/28/2018 a. $2,270 b. $2.430 c. $2545 d. $2.710 13. A person borrows S 10,000 at an interest rate of 8% per year and wishes to repay the loan over a 3-year period with annual payments such that the second payment (i.e. in year 2) is S500 greater that the finst payment and the third payment is $1,000 greater than the second payment. Determine the size of the first payment a. $2.040 b. $2.190 c. $3,250 d. $4,380

Explanation / Answer

Question:11

Solution: Answer is option a. A = $1000(F/A,6%,20)(F/P,6%,5)(A/P,6%,30)=$4,291.87

And if u solve it reverse then u will get $1,000.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.