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
Brut [27]
3 years ago
6

You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your

college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account

Business
2 answers:
pickupchik [31]3 years ago
3 0

Answer:

The answer is 27,408.71

Explanation:

Solution

Recall that:

You were left with a trust fund of =$100,00

Interest rate = 6.5%

Money with drawled = 4 installments

Now,

The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.

Now,

100, 00 = X (1 - (1.065)^-4/.065/1.065

We now solve for X

Thus

X =7,408.71

By applying or using a financial calculator

We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"

So,

N = 4

I/Y = 6.5

PV = -100,000

FV = 0

CPT PMT

The payments are known to to be 27,408.71

Note : Kindly find an attached copy of the Financial calculator below

Westkost [7]3 years ago
3 0

Answer:

$27,408.71

Explanation:

The formula that would be used to compute the annual withdrawal until the end of the year the future value left is zero, is given as under:

Present Value = X * [ 1 - (1 + r)^-n]  / [r / (1+ r)]

Here

N = 4

Future Value is 0

r is 6.5%

Present Value of the annuity is $100,000

CPT PMT is X which we have to calculate here.

By putting the values we have:

$100,000 = X * [ 1 - (1 + 6.5%)^-4]  / (6.5% / 1.065)

X = $27,408.71

You might be interested in
There are costs and benefits to either method of solving a Capitalizing Problem.<br> True or False?
Diano4ka-milaya [45]

Answer:

True.

Explanation:

3 0
2 years ago
These five things should be looked for in a career/ministry:
kipiarov [429]

Personal qualifications, occupational requirement, responsibilities, financial remuneration (pay) , working conditions.

Days off and vacation flexibility are 2 examples of things that fall under the working conditions category.

8 0
3 years ago
There are only three stocks in the economy. Stock A has 20 shares outstanding and a price per share of $10. Stock B has 15 share
gregori [183]

Answer:

Market value of stock A = 20 shares x $10 = $200

Market value of stock B = 15 shares x $3   = $45

Market value of stock C = 10 shares x $5   = $50

Total market value                                          $295

Amount to invest in stock A

= $200/$295 x $5,000

= $3,389.83

Explanation:

In this case, we will calculate the market value of each stock by multiplying the number of each stock by their corresponding market prices.

Thereafter, we will divide the market value of stock A by the total market value multiplied by amount available for investment ($5,000).

7 0
3 years ago
When you first start out you should expect to make less money than you will later because?
Nady [450]
Well due to lack of effective advertising and no expertise or experience in the field you shouldn’t expect major profit.However when you get more experienced and build a name for your company you will make more profits.
You can get more share capital ect
6 0
3 years ago
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.
Zanzabum

Answer:

Campus Stop, Inc.

Partial Income Statement

Sales revenue                              $323,300

Sales returns                                    ($1,730)

Sales discounts and allowances <u>  ($2,270)</u>

Net sales                                       $319,300

Cost of goods sold                      <u>($172,870)</u>

Gross profit                                   $146,430

Gross profit margin = $146,430 / $319,300 = 45.86%

8 0
2 years ago
Other questions:
  • 02 quiz consider the dominos pizza turnaround case study you read in this lesson. based on its actions, which of these things wo
    7·1 answer
  • The mean amount spent by a family of four on food per month is $700 with a standard deviation of $85. Assuming that the food exp
    10·1 answer
  • In specialized fields, technical knowledge is more important to employers than communication skills when deciding whom to hire a
    6·1 answer
  • Shares of common stock of the Samson Co. offer an expected total return of 12.00 percent. The dividend is increasing at a consta
    9·1 answer
  • The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as fo
    12·1 answer
  • It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2011. It ha
    15·1 answer
  • Universal Travel Inc. borrowed $509,000 on November 1, 2018, and signed a 12-month note bearing interest at 6%. Interest is paya
    15·1 answer
  • Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery
    14·1 answer
  • When a company uses price as a competitive weapon to drive weaker competitors out of a national market, it is using _____ pricin
    7·1 answer
  • A chemical bond resulting from the sharing of electrons between two elements with very similar electronegativity are indicative
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!