1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna11 [10]
3 years ago
5

Alice wants to know how much she'll have to invest today to receive an annuity of $10,000 for six years if interest is earned at

7% annually. She'll make all of her withdrawals at the end of each year. How much should she invest? A. $45,000 B. $47,665 C. $58,333 D. $55,800
Mathematics
2 answers:
spin [16.1K]3 years ago
8 0
Annuity formula is given by:
FV=P[(1+r)^n-1]/r
FV=future value
r=rate
n=time
P=principle
Plugging the value from the question we obtain:
FV=10000[(1+0.07)^6-1]/0.07
FV=71,532.91
Thus the current value of the annuity is given by:
A=p(1+r)^n
plugging in the values we obtain and solving for p we get:
71532.91=p(1+0.07)^6
p=71532.91/(1.07)^6
p=$47665.40
Hence the answer:
B] $47665
 


KIM [24]3 years ago
6 0

Alice wants to know how much she'll invest today to receive an annuity of $10,000 for six years if interest is earned at 7% annually.

We will use Annuity Payment formula, which states:

P=\frac{r (PV)}{1-(1+r)^{-n}}

where P is the payment,

PV is the present value,

r= rate per period,

n=number of periods.

According to the question,

P = $10,000

r=7%

n=6

We have to find the present value,

Substituting the values in the given formula,

PV=\frac{P(1-(1+r)^{-n})}{r}

PV=\frac{10,000(1-(1.07)^{-6})}{0.07}

PV= $ 47,665.

So, Alice wants to invest $47,665 today to receive an annuity of $10,000 for six years if interest is earned at 7% annually.

You might be interested in
PLEASE HELP AS SOON AS POSSIBLE!!!!!!!!!!!!!!!!!! |r+3| ≥7 solve the inequality (please show work and steps )
alexdok [17]
|r+3| = (r+3) when r ≥ -3 so for r ≥ -3
                        r + 3 ≥ 7
                               r ≥ 4
|r+3| = -(r+3) when r < -3 so for r < -3
                     -(r + 3) ≥ 7
                         r + 3 ≤ -7
                               r ≤ -10
The answer to this question is r ≤ -10, r ≥ 4
6 0
3 years ago
Read 2 more answers
Simpson deposits $1,200 in a savings account that earns simple interest at the rate of 5% per year. What interest does he earn a
Verdich [7]

Answer:

$60

Step-by-step explanation:

1200*0.05 = $60

5 0
3 years ago
In the United States, the average public school teacher currently earns an annual salary near $55,202. Reported national average
Makovka662 [10]

Answer:

i believe it is c

Step-by-step explanation:

6 0
3 years ago
ASAP I need help with this ​
Annette [7]

Answer:

its A

Step-by-step explanation:

If its one of these signs(<>) then its open and if its one of the signs with the line under it then its closed

4 0
3 years ago
Read 2 more answers
describe how making a list can help you solve a math problem.Write a problem that could be solved by making a list.
uranmaximum [27]
Making a list helps organize the information in a word problem that can otherwise be overwhelming and confusing. Making lists put out a straightforward guide and help you break down the problem so you really understand what you need to do. 
Word problem:
Maya has $55 and she gives her brother $10. She also gives her friend $15 and her sister $5. Her sister pays her back fully but her brother only pays back half of what he owed, promising to pay her back later. Her friend gives back 1/3 of what she owed, also promising to pay her back as soon as she can. How much money does Maya currently have?

In this problem, you have to process the money transactions and making a list will help you go step by step.
6 0
3 years ago
Other questions:
  • A line passes through (1, –5) and (–3, 7). a. Write an equation for the line in point-slope form. b. Rewrite the equation in slo
    6·2 answers
  • How do you solve basic quadratic equations, using the "completing the square" method. I know how to use the quadratic formula bu
    7·1 answer
  • [50 POINTS!!!] HELP! <br><br> Solve for x: x = ?
    8·1 answer
  • 2548 rounded to thousand
    9·2 answers
  • What is this quadratic function in standard form? y=(x+7) (x−5) Enter your answer in the box.
    10·1 answer
  • Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal
    13·1 answer
  • An equation is given.
    7·1 answer
  • Help please asap tysm! 10 brainly points! Will mark brainliest if you put in a random answer you will be reported! Tysm! &lt;3 N
    15·1 answer
  • Over the last three evenings, Linda received a total of 83 phone calls at the call center. The second evening, she received four
    14·1 answer
  • Put the following equation of a line into slope-intercept form, simplifying all fractions. 2x-10y=-20
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!