Based on the amount that Steve Weatherspoon wants to withdraw every year beginning in June 30, 2024, and the interest rate, the balance on June 30th 2023 should be $45,203.

<h3>What should the balance be in 2023?</h3>

The fact that Steve Weatherspoon wants to be able to withdraw a particular amount every year, this makes this amount an annuity.

The value in 2023 would therefore be the present value of the annuity that will then accrue to the required amounts as the years go by.

The present value of an annuity is:

= Annuity amount per year x Present value interest factor of an annuity, 11%, 3 years between 2024 and 2027

Solving gives:

= 13,126.25 x 3.44371

= $45,203

In conclusion, the balance on the fund in 2023 should be $45,203 in order for Steve Weatherspoon to achieve his objectives.

Find out more on the present value of an annuity at brainly.com/question/25792915

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2 years ago

Toby just graduated from four years of college. at the beginning of each year, he took out a stafford loan with a principal of $

Mila [183]

If he starts paying after four years, the worth of the loans by then is b. $31,616.16

This refers to the amount collected from a lender to be repaid after a given time, usually with added interest.

Hence, we can see that:

The effective monthly interest rate is:

i = 0.053/12 = 0.0044

The effective annual interest rate is:

i = (1 + 0.0044)^12 -1 = 0.0543

The present worth of all the loans is:

P = 6125 + 6125 (1 + 0.0543)^-1 + 6125 (1 + 0.0543)^-2 + 6125(1 + 0.0543)^-3

P = $22,671.40

If he pays them prompty, then the total lifetime cost would be

P = 22671.40 (1 + 0.0543)^4 = $31,616.16