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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.

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Answer:

Step-by-step explanation:

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Let x represent the number of yards of fabric that she has

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The equation will be

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to find how many costumes she can make with 8 yards of fabric, it becomes

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5 0
3 years ago
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son4ous [18]

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its

Step-by-step explanation:

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6 0
3 years ago
Please help it’s asking the perimeter to the nearest tenth
valkas [14]

Pythagoras theoram? use it here!

That is,

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H² = 15² + 4²

H² = 225 + 16

H = √241

H = 15.5

You should opt for 15.5

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5 0
3 years ago
What is the volume of a cylinder with a diameter of 8 name m and a height of 5.5
Cerrena [4.2K]

To begin, you must plug all the values you have into a formula, and also putting them in the right form.

The formula for the volume of a cylinder is: πr²h

FINDING RADIUS: With this in mind, now we know that, our diameter must be converted to a radius. To do this, you divide your diameter by two. This gives you, 4 as your radius.

FINDING HEIGHT: In the question you sent, you can tell they've given you, your height, so all you need to do is plug it into the equation.

PLUGGING IT IN:

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6 0
3 years ago
K-17=-12 I need help solveing this
Fed [463]
Remember, you can do ANYTHING to an equaiton as long as you do it to BOTH SIDES

we can try to get k by itself bymaking that -17 into 0 since k+0=k

-17+17=0 right so

K-17=-12
add 17 to BOTH SIDES
K+17-17=17-12
K+0=5
K=5
5 0
3 years ago
Read 2 more answers
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