How many years will it take to exhaust an IRA of $240000 if you withdraw $1800 every month? Assume a rate of interest of 8% combounded monthly. Answer = years An annuity makes a sequence of annual payments (starting a year from now) of 2300 dollars. If the payments were to twice as long, the present value of the annuity would increase by 30 percent. If the payments were to last 5 times as lol what would be the present value now of the final payment? Answer = dollars. Most scholarships are established by making a one time deposit into an account. The scholarship money is then taken from the earned interest on the account at the end of each investment year. How much money should you deposit into a account earning an annual interest rate of 7.583% compounded daily to establish an annual scholarship worth $1,400.0 ? (Note: Your answer should have a dollar sign and be accurate to two decimal places) Hint: A perpetuity pays 1700 dollars on January 1 of 1980,1982,1984,, and pays X dollars on January 1 of 1981,1983 , 1985, If the present value on January 1,1975 is 25500 dollars, and the effective rate of interest is 8.4 percent, what is X ? Answer = dollars