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DanielleElmas [232]
3 years ago
8

You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the e

nd of this period, you plan on withdrawing regular monthly payments. Determine the amount that you can withdraw each month for 10 years, if you plan on not having anything in the account at the end of the 10 year period and no future deposits are made to the account.
Business
1 answer:
erma4kov [3.2K]3 years ago
8 0

Answer:

Monthly payment = $769.27

Explanation:

First we have to determine the future value of the ordinary annuity:

Payment = $235.15

N = 20 * 12 = 240

Rate = 3.2% / 12 = 0.267%

Using a financial calculator and the FV function, the FV = $78,910.41

Again, using the financial calculator or Excel, you can determine the monthly payment:

N = 10 / 12 = 120

Rate = 0.267%

PV = $78,910.41

FV = $0

Monthly payment = $769.27

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Answer:

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The inventory turnover is defined as the ratio between the cost of merchandise sold during the year and the average inventory.

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The inventory turnover ratio is 2.7.

3 0
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A perpetuity will pay $300 per year, starting five years after the perpetuity is purchased. is purchased. What is the present va
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Answer:

present value of perpetuity = $29615.93

Explanation:

given data

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solution

we get here present value payment after 5 year is

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present value = \frac{1000}{(1+0.03)^5}

present value = $862.60

and

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present value = \frac{862.60}{0.03}

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and

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present value of perpetuity =  $862.60 + $28753.33

present value of perpetuity = $29615.93

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