You make a series of deposits and withdrawls from a bank account over the next 41...
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You make a series of deposits and withdrawls from a bank account over the next 41 months as illustrated in the diagram below You deposit $8,827 in the bank each month starting three months from now, and continue doing so until 41 You withdraw $8,000 seven months from now. Interest rates are: Every month you increase the amount of money you withdraw by $50 and continue doing so until 41 months from now. 1.00% per month, compounded monthly month 50 0 50 50 so 50 $8,827 a) What is the Present Value of the cash flows as illustrated? b) How much money will be in the bank account after 41 months? c) What is the Annual Worth of the cash flow diagram shown above? 58,827 50 $8.827 $0 $8,827 $8,827 $8,827 $8,827 -$8,050 -58,100 $8,827 10 -$8,150 ******* ****** $8,827 58,827 58,827 $8,827 38 -$9,550 39 40 41 -$9,600 -$9,650 -$9,700 You make a series of deposits and withdrawls from a bank account over the next 41 months as illustrated in the diagram below You deposit $8,827 in the bank each month starting three months from now, and continue doing so until 41 You withdraw $8,000 seven months from now. Interest rates are: Every month you increase the amount of money you withdraw by $50 and continue doing so until 41 months from now. 1.00% per month, compounded monthly month 50 0 50 50 so 50 $8,827 a) What is the Present Value of the cash flows as illustrated? b) How much money will be in the bank account after 41 months? c) What is the Annual Worth of the cash flow diagram shown above? 58,827 50 $8.827 $0 $8,827 $8,827 $8,827 $8,827 -$8,050 -58,100 $8,827 10 -$8,150 ******* ****** $8,827 58,827 58,827 $8,827 38 -$9,550 39 40 41 -$9,600 -$9,650 -$9,700
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The image shows a cash flow diagram representing a series of deposits and withdrawals made over a period of 41 months According to the information provided 8827 is deposited each month starting from t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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