Question
PLEASE WRITE DOWN ALL PROCESS OF CALCULATION ( DO NOT USE EXCEL), THE KEYS ARE SHOWN. Problem 2 . Present value and future value computations
PLEASE WRITE DOWN ALL PROCESS OF CALCULATION ( DO NOT USE EXCEL), THE KEYS ARE SHOWN.
Problem 2. Present value and future value computations (14 points). You may use the tables to find the appropriate PV factors, or you may use your financial calculator. Round your answers to the nearest dollar.
How much would a $200,000 investment made today grow by the end of 5 years at an interest rate of 6% per year?
$__________267,645 or growth of $67,645____________________________
Bill wants to retire at the end of this year (2021). His life expectancy is 5 years from his retirement. Tom has come to you, his CPA, to learn how much he should deposit on December 31, 2021, to be able to withdraw $60,000 at the end of each year for the next 5 years, with the first withdrawal on December 31, 2022, assuming the amount on deposit will earn 4% interest annually.
$_________________267,109______________
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