Executives at Energex Enterprises are trying to determine whether it would be better to own and operate a factory overseas or to
1 answer:
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Answer:
The withdrawals will be of $ 11,379.014 per month
Explanation:
Future value of the annuities:
C 750.00
time 360(30 years x 12 monhs per year)
rate 0.008333333 (10% / 12 months)
PV $1,695,365.9436
C 250.00
time 360 (30 years x 12 monhs per year)
rate 0.005 (6% / 12 months)
PV $251,128.7606
Total 1,695,365.84 + 251,128.76 = 1.946.494,6
and from here we withdraw for 25 years:
PV 1,946,495
time 300 (25 years x 12 months)
rate 0.004166667 (5% / 12 months)
C $ 11,379.014
Answer:
Thus, the present value is $2045.52.
Explanation:
Use the below formula to find the present value:
Present value = FV ÷ (1 + r/4)^(n*4)
Present value :
Thus, the present value is $2045.52.