Question
1, Michelle McFeaters can earn 6%. How much would have to be deposited in a savings account in order for Michelle to be able to
1, Michelle McFeaters can earn 6%.
How much would have to be deposited in a savings account in order for Michelle to be able to make equal annual withdrawals of $200 at the end of each of 10 years? The balance at the end of the last year would be zero. Round your answer to the nearest cent.
2. Barb Muller wins the lottery. She wins $20,000 per year to be paid for 10 years. The state offers her the choice of a cash settlement now instead of the annual payments for 10 years.
If the interest rate is 6%, what is the amount the state will offer for a settlement today? Round your answer to the nearest cent.
3. LuAnn Bean will receive $7,000 in 7 years.
What is the present value at 7% compounded annually? Round your answer to the nearest cent.
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