Suppose you could withdraw money continuously from a fund earning an annual effe
ID: 2755415 • Letter: S
Question
Suppose you could withdraw money continuously from a fund earning an annual effective interest rate of 4%. What is the present value of this fund if a total of 300 withdrawn per year depletes the fund in 10 years? A 2433 B 2482 C 2614 D 3602 E 3673Please, no excel spreadsheets. Suppose you could withdraw money continuously from a fund earning an annual effective interest rate of 4%. What is the present value of this fund if a total of 300 withdrawn per year depletes the fund in 10 years? A 2433 B 2482 C 2614 D 3602 E 3673
Please, no excel spreadsheets. A 2433 B 2482 C 2614 D 3602 E 3673
Please, no excel spreadsheets.
Explanation / Answer
The correct answer is A. $ 2433
Present Value = Cash Flow(PVAF, Life)
= 300*8.11
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.