Question

You know you will need $25,000 at the end of 5 years. How much would you have to deposit annually, starting at the end of the first year, into an account earning 10% to accumulate the needed amount?

Group of answer choices

$3,980

$4,095

$4,435

$4,973

$5,886




17.

What is the amount of the equal annual installments for a 10-year, $10,000 loan with a 20% rate of interest?

Group of answer choices

$2,225

$3,863

$2,385

$1,917

$2,000



18.

What amount received at the end of 15 years is equivalent to $100 received at the end of each year for 15 years if the interest rate is 12%?

Group of answer choices

$3,728

$4,042

$2,676

$547

$625

Answer 1

16)	$       4,095
Annual deposit	=-pmt(rate,nper,pv,fv)
	= $       4,095
Where,
rate	=	10%
nper	=	5
pv	=	0
fv	=	$       25,000
17)	$       2,385
Equal annual payment	=-pmt(rate,nper,pv,fv)
	= $       2,385
Where,
rate	=	20%
nper	=	10
pv	=	$       10,000
fv	=	0
18)	$       3,728
Future Value	=fv(rate,nper,pmt,pv)
	= $       3,728
Where,
rate	=	12%
nper	=	15
pmt	=	$           -100
pv	=	0