Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Nov 09, 2021

Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals

Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $600 per month for 20 years, if the account earns 6% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV- $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

01 600 per month for 20years account earus 6 pex yea we know here ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0125153928, 9780080478647, 125153929, 978-0123846822

More Books

Students also viewed these Mathematics questions

Question

★★★★★

If you contribute $100 every month for 20 years to a retirement plan and are then able to increase your contribution to $200 a month for another 20 years at a 6% interest rate. what is the total...

Answered: 1 week ago

Question

★★★★★

Find the present value of a four-month non-interest-bearing note for $2500 issued June 10, 2017, if money is worth 6.15%, on July 20, 2017.

Answered: 1 week ago

Question

★★★★★

Find the present value of a 180-day non-interest-bearing note for $7200 issued February 20, 2016, if money is worth 5.64%, on June 1, 2016.

Answered: 1 week ago

Question

★★★★★

Assume the following for the Howard Saks firm: Actual earnings of $28,000, beginning book value of $250,000, ending book value of $350,000, cost of capital of 6%. What are their abnormal earnings?

Answered: 1 week ago

Question

★★★★★

An employee has a blog he uses to encourage employees to form a union. In this blog, he makes false statements regarding the employer. The employer can therefore fire him.

Answered: 1 week ago

Question

★★★★★

The world output of transistors, the main components of microprocessors, has exploded from a little more than 1billion in the late 1960s to more than 1 quintillion today. During this same period, the...

Answered: 1 week ago

Question

★★★★★

=+14. Energy investment. An investment bank is thinking of investing in a start-up alternative energy company. They can become a major investor for $6M, a moderate investor for $3M, or a small...

Answered: 1 week ago

Question

★★★★★

The postclosing trial balance of the general fund of the town of Pine Ridge on December 31, 20X1, is as follows: Additional Information Related to 20X2 1. Estimated revenue consisted of property...

Answered: 1 week ago

Question

★★★★★

A hedge fund manager expects his portfolio to earn a rate of return of 9% year. The beta of the portfolio is 0.9. a. If the rate of return on the market portfolio is 14 percent and the risk-free rate...

Answered: 1 week ago

Question

★★★★★

According to a Bureau of Labor Statistics release of March 25, 2015, statisticians earn an average of $84,010 a year. Suppose that the current annual earnings of all statisticians have the mean and...

Answered: 1 week ago

Question

★★★★★

Problem 1. An angel investor has the opportunity to invest in a new tech company. For an initial investment of 3,500,000 on 1 January, 2021, and a follow-up investment of 1,500,000 six months later,...

Answered: 1 week ago

Question

★★★★★

Question 1: What is Ohms Law and how is it mathematically represented? Question 2: Explain Kirchhoffs Current Law (KCL) and Kirchhoffs Voltage Law (KVL). Question 3:What is Thevenins Theorem and how...

Answered: 1 week ago

Question

★★★★★

Q1: What is performance measurement in accounting? Q2: What are Key Performance Indicators (KPIs), and why are they important?

Answered: 1 week ago

Question

★★★★★

Q1: What are the main financial statements, and what information do they provide? Q2: Why is the cash flow statement important, and how does it differ from the income statement?

Answered: 1 week ago

Question

★★★★★

Q1: What are Generally Accepted Accounting Principles (GAAP)? Q2: What is the difference between GAAP and International Financial Reporting Standards (IFRS)?

Answered: 1 week ago

Question

★★★★★

Q1: What is cost accounting, and why is it important for businesses? Q2: Explain the difference between fixed costs and variable costs with examples.

Answered: 1 week ago

Question

★★★★★

Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $294,000 Processing lost customer reservations...

Answered: 1 week ago

Question

★★★★★

Find the area of the surface generated by revolving the para- metric curve x = cos 1, y = sin? 1 (0 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

You are given the spot-rate model; dr 1 = ? (k ? r t ) dt + bdW, where the W t , is a Wiener process under the real-world probability. Under this spot rate model, the solution to the PDE that...

Answered: 1 week ago

Question

★★★★★

Let H be a Wiener process. Consider the geometric process S again: (a) Calculate dS t . (b) What is the ?expected rate of change? of S t ? (c) If the exponential term in the definition of S t , did...

Answered: 1 week ago

Question

★★★★★

We consider the random process St, which plays a fundamental role in BIack-Scholes analyses: St = S0e[1+Wt] Where Wt is a Wiener process with W0 = 0, is a trend factor, and (Wt Ws) N(0, (I s)),...

Answered: 1 week ago

Question

★★★★★

A $25,000, 6.25% coupon bond has 21 1/2 years remaining until maturity. Calculate the bond premium if the required return in the bond market is 5.2% compounded semiannually.

Answered: 1 week ago

Question

★★★★★

Research psychologists are interested in finding out whether a persons breathing patterns are affected by a particular experimental treatment. To determine the general respiratory patterns of the n =...

Answered: 1 week ago

Question

★★★★★

After two years of the first five-year term at 6.7% compounded semiannually, Dan and Laurel decide to take advantage of the privilege of increasing the payments on their $110,000 mort- gage loan by...

Answered: 1 week ago

Previous Question Next Question