Brief Exercise G-13 Your answer is incorrect. Try again Cullumber Company earns

Question

Brief Exercise G-13 Your answer is incorrect. Try again Cullumber Company earns 8% on an investment that pays back $96,800 at the end of each of the next 10 years. iew the fac ble (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) what is the amount Cullum ber Company invested to earn the 8% rate of return? (Round answer to 2 decimal places, eg. 25.25.) Cullumber Company invested 1210000 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=96800[1-(1.08)^-10]/0.08

=96800*6.71008

=$649,535.74(Approx).

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.