Present and future values of $1 at 3% are presented below: FVA $1 PVA $1 FVAD...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Present and future values of $1 at 3% are presented below: FVA $1 PVA $1 FVAD $1 PVAD $1 PV $1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 2.91347 3.0909 2.82861 3.1836 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 6 1.19405 0.83748 7 1.22987 0.81309 5.3091 4.57971 5.4684 4.71710 6.4684 5.41719 6.6625 5.57971 7.6625 6.23028 7.8923 6.41719 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 8 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 N FV $1 1 IN 2 34 1.09273 0.91514 1.12551 0.88849 Suppose you would like to have of $150,000 3-years from now. How much must you invest today in an account that earns 6% compounded semiannually? 9 Present and future values of $1 at 3% are presented below: N FV $1 PV $1 FVAD $1 PVAD $1 FVA $1 1.0000 PVA $1 0.97087 1 1.03000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 5 6.41719 7.23028 8.01969 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 1.22987 0.81309 7.6625 6.23028 7.8923 1.26677 0.78941 8.8923 7.01969 9.1591 9 1.30477 0.76642 10.1591 7.78611 10.4639 10 1.34392 0.74409 11.4639 8.53020 11.8078 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 8.78611 678a Jimmy has $261,672 accumulated in a 401k plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdraws $42,000 each year? Present and future values of $1 at 3% are presented below. FVAD $1 PVAD $1 1.0300 1.00000 2.0909 1.97087 N FV $1 PV $1 FVA $1 PVA $1 1 1.03000 0.97087 1.0000 0.97087 2 1.06090 0.94260 2.0300 1.91347 3 1.09273 0.91514 3.0909 2.82861 4 1.12551 0.88849 4.1836 3.71710 5 1.15927 0.86261 5.3091 4.57971 6 1.19405 0.83748 6.4684 7 1.22987 0.81309 7.6625 3.1836 2.91347 4.3091 3.82861 5.4684 4.71710 5.41719 6.6625 5.57971 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 8.01969 8.78611 9 1.30477 0.76642 10.1591 7.78611 10.4639 10 1.34392 0.74409 11.4639 8.53020 11.8078 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 Jose wants to cash in his winning lottery ticket. He can either receive six, $3,000 annual payments starting today, or he can receive one lump-sum payment today based on a 3% annual interest rate. What would be the lump-sum payment? Present and future values of $1 at 3% are presented below: FVA $1 PVA $1 FVAD $1 PVAD $1 PV $1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 2.91347 3.0909 2.82861 3.1836 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 6 1.19405 0.83748 7 1.22987 0.81309 5.3091 4.57971 5.4684 4.71710 6.4684 5.41719 6.6625 5.57971 7.6625 6.23028 7.8923 6.41719 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 8 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 N FV $1 1 IN 2 34 1.09273 0.91514 1.12551 0.88849 Suppose you would like to have of $150,000 3-years from now. How much must you invest today in an account that earns 6% compounded semiannually? 9 Present and future values of $1 at 3% are presented below: N FV $1 PV $1 FVAD $1 PVAD $1 FVA $1 1.0000 PVA $1 0.97087 1 1.03000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 5 6.41719 7.23028 8.01969 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 1.22987 0.81309 7.6625 6.23028 7.8923 1.26677 0.78941 8.8923 7.01969 9.1591 9 1.30477 0.76642 10.1591 7.78611 10.4639 10 1.34392 0.74409 11.4639 8.53020 11.8078 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 8.78611 678a Jimmy has $261,672 accumulated in a 401k plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdraws $42,000 each year? Present and future values of $1 at 3% are presented below. FVAD $1 PVAD $1 1.0300 1.00000 2.0909 1.97087 N FV $1 PV $1 FVA $1 PVA $1 1 1.03000 0.97087 1.0000 0.97087 2 1.06090 0.94260 2.0300 1.91347 3 1.09273 0.91514 3.0909 2.82861 4 1.12551 0.88849 4.1836 3.71710 5 1.15927 0.86261 5.3091 4.57971 6 1.19405 0.83748 6.4684 7 1.22987 0.81309 7.6625 3.1836 2.91347 4.3091 3.82861 5.4684 4.71710 5.41719 6.6625 5.57971 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 8.01969 8.78611 9 1.30477 0.76642 10.1591 7.78611 10.4639 10 1.34392 0.74409 11.4639 8.53020 11.8078 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 Jose wants to cash in his winning lottery ticket. He can either receive six, $3,000 annual payments starting today, or he can receive one lump-sum payment today based on a 3% annual interest rate. What would be the lump-sum payment?
Expert Answer:
Answer rating: 100% (QA)
Part 1 Here Annul period is 3 years So semiannual period is 6 Let present value of investment be x S... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
Students also viewed these accounting questions
-
What is annuity due Explain why for both present and future values the 4 marks value of an annuity due is always greater than the value of an ordinary annuitv
-
To earn this week's participation points, please imagine you have a company, and your company buys and sells one product. Set a selling price for your product and also estimate a price that you pay...
-
Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2008. 1. Pirates Co. has developed the...
-
At December 31, 2014, Torrealba Company reported the following as plant assets. During 2015, the following selected cash transactions occurred. April 1 Purchased land for $1,200,000. May 1 Sold...
-
1. You are in charge of strategic planning for Grand Casinos. The company wants to open and manage a casino in rural Iowa. Community residents have asked you and your strategic planning team to...
-
How can individuals proficiently utilize advanced budgeting and cash flow management techniques, including zero-based budgeting, to optimize spending patterns, increase savings rates, and achieve...
-
Discuss the employment-at-will doctrine.
-
Consider a population of 6 students. Suppose we know the test scores of the students to be a. Find the mean U and variance S2 of the population. b. How many SRSs of size 4 are possible? c. List the...
-
Use the graph to answer each part. K (a) List all the even vertices and all the odd vertices. Click on "None" as needed. List of the even vertices: List of the odd vertices: (b) List all vertices...
-
1. This family business has made numerous transitions. It started as two brothers and their wives (Whitehall), then became a husband and wife team (Judds Hill), and finally parents with their son and...
-
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. RENN-DEVER CORPORATION Statements of...
-
The following utility function of a complete portfolio (C) is provided. U = E(rc) - 0.5Aoz You can invest in T-Bill with a safe return of 5%. Alternatively, three risky portfolios are available for...
-
Provide simple descriptions on the purpose of the Top brand & products report generated. The users of the Top brand & products report. How the Top brand & products report helps people in...
-
ZEN,Inc recently had cash flow problems and they approached their bank to ask for its help resolve the issue. The bank considers the company a good client and believes that the cash flow problems are...
-
A supermarket is planning to locate warehouses in the districts of a city. The supermarket delivers and stocks two types of products; food and non-food products. The two plants supply the products to...
-
You are the new HR Manager for Company X, reporting to the General Manager (GM) of the company. When you examined the current Compensation & Benefits (C&B) structure of your new company, you found...
-
Two investment options are available to Mr. Prem. The first option promises to pay Rs.75000 at the end of 8 years if an investor deposits Rs.7000 annually for 8 years. The second scheme promises a...
-
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
-
Harry Klein, inventor, formed Peer-less Load Levelers Company in 1955 to produce a simple three-piece device for automatically leveling loads on industrial conveyor belts. As the business grew and...
-
Under what conditions could a process complete more units during the period than it started?
-
Blade Runner produces regular scooters and motorized scooters. Blade Runner scooters are considered the most reliable in the marketplace. Demand has been volatile, with huge increases in demand...
-
In Appendix 16A.1, we illustrate the calculation of a standard error for the marginal effect in a probit model of transportation, Example 16.4. In the appendix, the calculation is for the marginal...
-
In Example 16.3, we illustrate the calculation of the likelihood function for the probit model in a small example. a. Calculate the probability that \(y=1\) if \(x=1.5\), given the values of the...
-
In Examples 16.2 and 16.4, we presented the linear probability and probit model estimates using an example of transportation choice. The logit model for the same example is \(P(A U T...
Study smarter with the SolutionInn App