You are trying to determine the amount you must deposit now in an account that will...
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You are trying to determine the amount you must deposit now in an account that will allow you to withdraw $1,000 in year 1, $800 in year 2, $600 in year 3, $400 in year 4, and $200 in year 5. The account pays 5% interest compounded annually. If you were to use factors, you could find P as: P = X₁ X (P/A, 5%, 5) + X₂ X (P/G, 5%, n) where X, and X₂ are dollar amounts, and n is an integer number. What is the value of X₂ (the value multiplied by (P/G, 5%, n)? You do not need to solve for P. Just present the requested values. You are trying to determine the amount you must deposit now in an account that will allow you to withdraw $1,000 in year 1, $800 in year 2, $600 in year 3, $400 in year 4, and $200 in year 5. The account pays 5% interest compounded annually. If you were to use factors, you could find P as: P = X₁ X (P/A, 5%, 5) + X₂ X (P/G, 5%, n) where X, and X₂ are dollar amounts, and n is an integer number. What is the value of X₂ (the value multiplied by (P/G, 5%, n)? You do not need to solve for P. Just present the requested values.
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X1 is the amount you can withdraw at the end of first year that is 1000 Next year ... View the full answer
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
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