Using the compound interest tables, answer each of the following questions.
Required:
a.Assuming that $100,000 to be paid at the end of ten years has a present value today of $50,834.90, what interest rate compounded annually is used in the calculation of the present value?b.What amount must be deposited today if $200,000 is to be accumulated six years from today, and interest at 12% is compounded semiannually?
What will be an ideal response?
| a. |  ?i =7.0% | |
| b. | PV | = FV× (fn = 12, i = 6%) |
| = $200,000.00 × 0.496969 | ||
| = $ 99,394. | ||
?
You might also like to view...
Provide an appropriate response.True or False? If you buy an item (such as property or stock) at one price and later sell it at a higher price, the profit is called a capital gain.
A. True B. False
Simplify the expression.
+ tan ?
A. sin2 ? B. 1 C. cos ? + sin ? D. sec ?
Write the first five terms of the arithmetic sequence with the given first term a and common difference d.a = 4; d = 5
A. 4, 8, 12, 16, 20 B. 4, 9, 14, 19, 24 C. 9, 14, 19, 24, 29 D. 0, 4, 9, 14, 19
Taylor would like to retire on December 31, 2026, and take a trip around the world. In order to do this, she feels she must accumulate $200,000 in her retirement account by that date. She is willing to deposit a certain amount each year into her retirement account, which earns 12% interest compounded annually. Taylor will make the first deposit on December 31, 2017, and the last deposit on December 31, 2026. ? Required: ? Determine the amount Taylor must deposit into her retirement account each year. Clearly label all work.
What will be an ideal response?