Question
Kelly Reading invests $23,558.57 now for a series of $3,300 annual returns beginning one year from now. Kelly will earn a return of 8% on the initial investment.
How many annual payments of $3,300 will Kelly receive? (Hint: Use Table 4)
Account.pdf - Adobe Reader File Edit View Window Help 14 198% Tools Sign Comment Sign In Export PDF Files TABLE 1 Future Value of 1 Adobe ExportPDF Convert PDF files to to Word or Excel online. Select PDF File: Periods 5% 15% 4% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.04000 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 1.08160 1.10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440 1.32250 1.12486 1.15763 1.19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 1.16986 1.21551 1.262481.31080 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 1.26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.870411.97382 2.31306 1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 1.36857 1.477461.59385 1.71819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 1.42331 1.55133 1.689481.83846 1.99900 2.171892.35795 2.55803 2.77308 3.51788 1.48024 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.839423.10585 4.04556 1.53945 1.71034 1.89830 2.10485 2.33164 2.58043 2.85312 3.15176 3.47855 .65239 1.60103 1.79586 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845 3.89598 5.35025 1.66507 1.88565 2.13293 2.40985 2.71962 3.06581 3.45227 3.883284.363496.15279 1.731681.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.310444.88711 7.07571 1.80094 2.078932.39656 2.75903 3.17217 3.642484.17725 4.784595.473578.13706 1.87298 2.18287 2.54035 2.95216 3.42594 3.97031 4.59497 5.310896.130399.35762 1.94790 2.29202 2.692773.15882 3.70002 4.32763 5.054475.895096.86604 10.76126 2.02582 2.40662 2.85434 3.37993 3.99602 4.717125.55992 6.54355 7.68997 12.37545 2.10685 2.52695 3.02560 3.61653 4.31570 5.14166 6.11591 7.26334 8.61276 14.23177 2.19112 2.65330 3.20714 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654 6% 9% 10% 12% Account.pdf 8% 11% 1 file/261 KB 0 Convert To: Microsoft Word (.docx) Recognize Text in English(U.S.) Change 4 onvert Create PDF Files Send Files 9 20 2:14 PM 4/10/2016
Explanation / Answer
Present value =Annual payment *PVAF@8%,n
23,558.57 = 3300 * PVAF@8%,n
23558.57 /3300 =PVAF@8%,n
PVAF@8%,n = 7.13896
when you see at present value annuity table ,you will find that at 8% ,11 years ,annuity factor = 7.13896
so number of years for payment is received = 11 years
