Answer:
c) $56,984
Explanation:
First, kindly find attached the completion of the question including the multiple choices below
Round your answer to the nearest dollar.
Select the appropriate factor for your calculation:
Future Value of $1: 3.10585
Future Value of an Annuity of an Ordinary Annuity: 17.54874
a) 45,586 b) $33,334 c) $56,984 d)$26,432
Solution
First, we pull out important information as follows
The future value of the accumulation is $1,000,000, therefore, the future value of the ordinary annuity (17.54874) will be used.
Secondly,we now need to calculate the amount to be invested now, to bring an accumulation of $1,000,000, which we call x
The future value= x (
Future Value of an Annuity of an Ordinary Annuity)
= 1,000,000 = x (17.54874)
= $1,000,000 = 17.54874x
x= $1,000,000 / 17.54874
The amount to invest = $56,984
