Question

Stacy Alvarez is investing $381,500 in a fund that earns 11% interest compounded annually.

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What equal amounts can Stacy withdraw at the end of each of the next 16 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Yearly withdrawals

$

Chris Inc. will deposit $56,600 in a 11% fund at the end of each year for 7 years beginning December 31, 2020.

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What amount will be in the fund immediately after the last deposit? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Amount in fund

$

Sheffield Inc. issues $1,700,000 of 7% bonds due in 15 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%.

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What amount will Sheffield receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.)

Amount received by Sheffield when bonds were issued

$enter a dollar amount rounded to 0 decimal places

Answer 1

Answers.

1. Yearly withdrawal=$51700

2. Amount in the fund=$553733

3. Amount received by Sheffield=$1211014