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Sauron [17]
3 years ago
7

n investor has $100,000 invested in an account that earns 5% annually. The investor wishes to withdraw $12,000 per year. If the

investor withdraws $12,000 annually, the account will be fully depleted in:

Business
1 answer:
lawyer [7]3 years ago
3 0

Answer:

11 years

Explanation:

For computing, the number of years or the account will be fully depleted we need to apply the NPER formula i.e to be shown in the attachment below:

Given that,  

Present value = $100,000

Future value = $0

PMT = $12,000

Rate of interest = 5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years in which the account is depleted is 11 years

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2 years ago
The Cheese Factory incurred the following costs related to acquiring a new piece of equipment: Cost of the equipment $ 50,000 Sa
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The multiple choices missing from the question are:

a. $60,000.

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d. $59,000.

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The recorded cost is computed thus:

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shipping               $3,000

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