Question

What lump sum of money must be deposited into a bank account at the present time...

What lump sum of money must be deposited into a bank account at the present time so that $600 per month can be withdrawn for six ​years, with the first withdrawal scheduled for seven years from​ today? The interest rate is 1​/2​% per month.​ (Hint: Monthly withdrawals begin at the end of the month 84​.)

Business   Economics   
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
Time Value of Money a. What is the present value of a $2,000 lump sum to...
Time Value of Money a. What is the present value of a $2,000 lump sum to be paid in six years if interest rate is 5%? b. Suppose you deposit $1,000 today in an account that pays 8% APR. How many years will it take the account balance to grow to $3,000 if interest is compounded quarterly?
(8 marks) Time Value of Money   What is the present value of a $2,000 lump sum...
Time Value of Money   What is the present value of a $2,000 lump sum to be paid in six years if interest rate is 5%?                                                                       Suppose you deposit $1,000 today in an account that pays 8% APR. How many yearswill it take the account balance to grow to $3,000 if interest is compounded quarterly?
An account pays an annual rate of 8% percent compounded monthly. What lump sum must you...
An account pays an annual rate of 8% percent compounded monthly. What lump sum must you deposit into the account now so that in 10 years you can begin to withdraw $4000 each month for the next 20 years, drawing down the account to zero?
How much money must be deposited in saving account each month to accumulate $25,000 at the...
How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded Monthly? Quarterly ?
How much money must be deposited in saving account each month to accumulate $25,000 at the...
How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded a. monthly ? b. quarterly ?
What lump sum deposited today at 8 ?% compounded quarterly for 15 years will yield the...
What lump sum deposited today at 8 ?% compounded quarterly for 15 years will yield the same final amount as deposits of ?$6000 at the end of each? 6-month period for 15 years at 8 ?% compounded? semiannually? The value of the lump sum is?
Assume that you saved $641,000 in a retirement account. The money is deposited in an account...
Assume that you saved $641,000 in a retirement account. The money is deposited in an account that earns 5% interest compounded Weekly. You want to retire and begin making weekly withdrawals from the account such that the money (principal and interest) lasts exactly 23 years. What is the amount of the weekly withdrawal?
What lump sum deposited today at 8​% compounded quarterly for 5 years will yield the same...
What lump sum deposited today at 8​% compounded quarterly for 5 years will yield the same final amount as deposits of ​$3000 at the end of each​ 6-month period for 5 years at 4​% compounded​ semiannually?
What lump sum deposited today at 12​% compounded quarterly for 10 years will yield the same...
What lump sum deposited today at 12​% compounded quarterly for 10 years will yield the same final amount as deposits of ​$4000 at the end of each​ 6-month period for 10 years at 10​% compounded​ semiannually?
What lump sum deposited today at 12​% compounded quarterly for 5 years will yield the same...
What lump sum deposited today at 12​% compounded quarterly for 5 years will yield the same final amount as deposits of ​$5000 at the end of each​ 6-month period for 5 years at 8​% compounded​ semiannually?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT