Determine the equal annual withdrawals

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Reference no: EM13917268

1) Beginning at the end of second years, five equal withdrawals are to be made. Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually at the end of first year.

2) Ten payments of $ 3,000, are due at annual intervals beginning June 30, next year. What amount will be accepted in cancellation of this series of payments on June 30, the current year, assuming a discount rate of 14% compounded annually?

3) Ten payments of $ 2,000 are due at annual intervals beginning at the end of year 1. What amount will be accepted in cancellation of this series of payments on at the beginning of year 1, assuming a discount rate of 12% compounded annually?

Reference no: EM13917268

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