Question

You know you will need $25,000 at the end of 5 years. How much would you...

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



Homework Answers

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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