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 |

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