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Debora [2.8K]
3 years ago
11

Please help with numbers 5 and 7!

Mathematics
1 answer:
natta225 [31]3 years ago
5 0
The answer for number 5 is= 6+2 bc 6×2=12 and 6+2=8
and I'm sorry I have no idea for number 7
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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
spin [16.1K]
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
 


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2 years ago
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