Question
Please use a calculator or any method you prefer for the following problems: (All answers for questions 5 to 13 must be recorded on these
Please use a calculator or any method you prefer for the following problems: (All answers for questions 5 to 13 must be recorded on these sheets. Please show work if possible.)
5. If you were to receive $20,000 each year for the next 10 years at 4 interest starting at the end of this year, determine what amount the annuity would accumulate to ________________.
6. If you were to receive $1727 each year for 10 years (payments) starting now, determine what this annuity is worth right now assuming 5% interest _______________________.
7. If you were to receive $1,000 each year for 10 years starting the end of 5 years, determine what this annuity is worth right now assuming 7% interest _______________________ (deferred annuity)
8. Marty wants to deposit $10,000 a year for 30 years. She then wants to retire for 30 years using all the monies available equally. How much can she withdraw for the 30 years assuming an interest rate at 4%? __________________________
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