cash needs at S29,000f She hee rs off work to travel around the world. She estim
ID: 2404557 • Letter: C
Question
cash needs at S29,000f She hee rs off work to travel around the world. She estimates her annual avings at 8% until she depletes her funds. (Click the icon to view Present Value of Ordinary Annuity of $1 table) (Click the icon to view Future Value of Ordinary Annuity of $1 table ) Value of $1 table) Value of $1 table) ts ney does Carol need now to fund her travels? (Round your answer to the nearest whole dollar.) Requirements 1. How much money does Carol need now to fund her travels? 2. After speaking with a number of banks. Carol learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels? Print Done he edit fields and then click Check Answer Clear All Check God is not slack oncerning His promises!"
Explanation / Answer
Answer 1.
Annual Cash needed = $29,000
Annual Interest Rate = 8%
Period = 6 years
Amount Need = $29,000 * PVA of $1 (8%, 6)
Amount Need = $29,000 * 4.623
Amount Need = $134,067
Answer 2.
Annual Cash needed = $29,000
Annual Interest Rate = 4%
Period = 6 years
Amount Need = $29,000 * PVA of $1 (4%, 6)
Amount Need = $29,000 * 5.242
Amount Need = $152,018
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.