Question

A person invested 2,000,000 SR in an account that pays 10% compounded annually. The first withdraw...

A person invested 2,000,000 SR in an account that pays 10% compounded annually. The first withdraw happens at the end of year 3. The payments increase at 5% every year until the end of 6th year. Thereafter, the payments decrease by 5,000 SR every year. The planning horizon is 15 years. Calculate the value of the first withdraw such that this investment is attractive (Use PW analysis)

Engineering   Civil-Engineering   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A person invested 2,000,000 SR in an account that pays 10% compounded annually. The first withdraw...
A person invested 2,000,000 SR in an account that pays 10% compounded annually. The first withdraw happens at the end of year 3. The payments increase at 5% every year until the end of 6th year. Thereafter, the payments decrease by 5,000 SR every year. The planning horizon is 15 years. Calculate the value of the first withdraw such that this investment is attractive (Use PW analysis)
What is the future value of $100 invested at 10% compounded annually for 3 years? What...
What is the future value of $100 invested at 10% compounded annually for 3 years? What is the future value of $100 invested at 10% compounded annually for 10 years? What is the present value of an investment that will give you $100 after 10 years with a rate of 10% compounded annually? You end up with $20,000 after investing for 20 years at 8% annually. What was the PV? Maverick Jane places $800 in a savings account paying 6%...
* Engineering Economic Analysis How much money must be invested in an account that pays 6%...
* Engineering Economic Analysis How much money must be invested in an account that pays 6% per year in- terest to be worth $20,000 at the end of 8 years if (forgetting leap years and making “convenient” assumptions): (a) Interest is compounded annually ? (b) Interest is compounded semi-annually ? (c) Interest is compounded quarterly ? On (c), provide the solutions using the Compound interest table AND the formula AND the EAIR
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount...
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years is
A person has $100,000 in a saving account that earns interest of 5% per year, compounded...
A person has $100,000 in a saving account that earns interest of 5% per year, compounded annually. If the person withdraws $5,000 at the end of each year, after how many years (a whole number) will the saving be exhausted? Will it ever get exhausted?
You currently have $20,000 in a bank account that pays you 5 percent interest annually. You...
You currently have $20,000 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years? You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to withdraw $800 (starting 1 year from now) every year for...
1. Derek currently has $12,393.00 in an account that pays 6.00%. He will withdraw $5,548.00 every...
1. Derek currently has $12,393.00 in an account that pays 6.00%. He will withdraw $5,548.00 every other year beginning next year until he has taken 5.00 withdrawals. He will deposit $12393.0 every other year beginning two years from today until he has made 5.0 deposits. How much will be in the account 26.00 years from today? 2. Derek can deposit $258.00 per month for the next 10 years into an account at Bank A. The first deposit will be made...
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded...
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is higher. You are indifferent between the banks and...
10. Suppose $14,000 is invested in a quarterly compounded account at 3.58%. Approximately how long will...
10. Suppose $14,000 is invested in a quarterly compounded account at 3.58%. Approximately how long will it take for the balance to reach $37,100? ____ year (Round the answer to the nearest tenth of a year.) 13. If income tax varies directly with income and a person earning $32,000 per year pays $8,320 in taxes, how much will a person earning $46,000 per year pay? $________
Derek currently has $11,714.00 in an account that pays 5.00%. He will withdraw $5,458.00 every other...
Derek currently has $11,714.00 in an account that pays 5.00%. He will withdraw $5,458.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11714.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 22.00 years from today? Answer format: Currency: Round to: 2 decimal places. Derek can deposit $294.00 per month for the next 10 years into an account at Bank A....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT