Question 1
1 answer:
Answer:
You'll need to look at the attached formula.
Annual Payout = 500,000 * .12 * (1.12)^15 / [(1.12)^15 -1]
Annual Payout = 500,000 * .12 * 5.4735657593 / [ 5.4735657593 -1]
Annual Payout = 500,000 * .12 * 5.4735657593 / [4.4735657593]
Annual Payout = 60,000 * 5.4735657593 / [4.4735657593]
Annual Payout = 73,412.12
Source: http://www.1728.org/annupay.htm
That's a LOT of calculating :-)
Step-by-step explanation:
You might be interested in
Mr. and Mrs. Bailey need to invest $2906.50 so as to send their son to college.
<h3>Compound interest</h3>Compound interest is given by:
where A is the amount after t years, P is initial amount, r is the rate and n is the times compounded per period
Given that n = 1, r = 9% = 0.09, A = $7500 t = 11. Hence:
Mr. and Mrs. Bailey need to invest $2906.50 so as to send their son to college.
Find out more on Compound interest at: brainly.com/question/24924853