If you want to withdraw $10,000 at the end of two years and $35,000 at the end

Question:

If you want to withdraw $10,000 at the end of two years and $35,000 at the end of four years, how much should you deposit now into an account that pays 9% interest compounded annually? See the accompanying cash flow diagram.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

See More Books

Question Posted: Oct 12, 2018 01:53 PM

See More Questions

You wish to retire in 12 years and currently have $50,000 in a savings account yielding 5 percent annually and $100,000 in quality "blue chip" stocks yielding 10 percent. If you expect to add $30,000...
You plan to retire at age 65. You want to withdraw $100,000 from your savings account every year starting on your 65th birthday. You expect to make your final withdrawal on your 84th birthday. How...
The Plank Company surrenders $5,000,000 cash plus 250,000 shares of 2 its own $l par value stock worth $10,000,000 for Stud Company, in a statutory merger. Management of Plank also makes the...
You are attempting to arrive at what the monthly rate of change that has recently occurred in the real estate market. In doing some market research, you find two properties that have sold twice...
Refer to the Arctic Springs Bottling Department Data Set. 1. Draw a time line. 2. Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical...
please let me know if you need anything else. thank you. Interview Notes . . a . Fred, age 67 and Wilma, age 58, are married. They elect to file Married Filing Jointly. Fred is retired. He received...
A computer manufacturer promoted the sale of a digital computer as a revolutionary breakthrough. The manufacturer made a contract to deliver one of these computers to a buyer. The seller failed to...
Consider the following cash flow: Year Cash Flow 0...................................-$400 1...........................................0 2....................................+200...
Dumbledore Company showed the following balances at the end of its first year: $16,000 500 Cash Prepaid insurance Accounts receivable Accounts payable Notes payable Common stock 2,500 2,000 3,000...
The following selected tax information has been taken from the books and records of your client, Mr. Weilman. Non-capital loss arising in 2008 $33,000 Net capital loss arising in 2009 25,000 Listed...
How many years will it take to double your investment of $2,000 if it has an interest rate of 6% compounded annually?
You are interested in buying a piece of real estate property that could be worth $450,000 in five years. If your earning interest rate is 5%, how much would you be willing to pay for this property...
The following information is taken from Marsh Supermarkets annual report: During the first quarter, we made several decisions resulting in a $13 million charge to earnings. A new accounting...
Your introduction needs to include the following. o Include a clear definition of unemployment and inflation and how and why they occur and rise in the economy. o Briefly provide your understanding...
Questions: 1. What strategies can be employed to foster a sense of inclusion and belonging within teams, and what are the potential benefits of doing so? 2. How can a team be successful? 3. What is...
Critical reflection involves closely examining events and experiences from different perspectives to inform future practice. In a few paragraphs, explain - Why educators should regularly reflect on...
What resources does the school or school district provide to teachers to promote diversity, equity, and inclusion? What are some of the strengths and shortcomings of the school's policies on...
Select FOUR companies listed on the UK Stock Exchange. Chose two companies from one industry sector and two other companies from another industry sector. By using the most recent three years'...
Let f (x) be a function whose derivative is Show that the graph of f (x) has an inflection point at x = 0. f'(x) = 5x + 1. 2
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
You may have already won $2 million! Just peel the game piece off the Instant Winner Sweepstakes ticket, and mail it to us along with your order for subscriptions to your two favorite magazines. As a...
Read the following letter from a magazine publisher. Dear Parent: Currently your Growing Child/Growing Parent subscription will expire with your 24-month issue. To renew on an annual basis until your...
At what interest rate are these two transactions in Figure P3.8 equivalent? $1.200 $1,000 2 Option I Option 2
Q1) The equity of Washington Ltd at 1 July 2020 consisted of: Share capital 500 000 A ordinary shares fully paid $1 500 000 400 000 B ordinary shares issued for $2 and paid to $1.50 600 000 General...
out The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at...
Exercise 10-8 Utilization of a constrained Resource [LO10-5, L010-6] Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit...

If you want to withdraw $10,000 at the end of two years and $35,000 at the end

Question:

$35,000 $10,000 1 2 3 Years P = ?

Step by Step Answer:

P 35000PF 9 ...View the full answer

Fundamentals of Engineering Economics

Students also viewed these Business questions