1)The IF for the future value of an annuity is 4.641 at 10% for 4 years. If we w
ID: 2675614 • Letter: 1
Question
1)The IF for the future value of an annuity is 4.641 at 10% for 4 years. If we wish to accumulate $29,000 by the end of 4 years, how much should the annual payments be?2)To save for her newborn son's college education, Lea Wilson will invest $2,000 at the beginning of each year for the next 12 years. The interest rate is 8 percent. What is the future
value?
3)How much must you invest at 12% interest in order to see your investment grow to $32,000 in 14 years
4)Ambrin Corp. expects to receive $6,000 per year for 14 years and $7,500 per year for the next 14 years. What is the present value of this 28 year cash flow? Use an 10% discount rate
5)Pedro Gonzalez will invest $21,000 at the beginning of each year for the next 7 years. The interest rate is 10 percent. What is the future value?
Explanation / Answer
29,000/4.641= 6248.65 2000*[(1.08)^12 -1]/.08= 37954.25 32,000/(1.12)^14= 6547.83 4 I'm going to skip. 21,000* ((1.10)^7-1)/.10= 199,230.51
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