What amount must be invested not to allow withdrawals

Reference no: EM13213560

An amount, P, must be invested not to allow withdrawals of $1,000 per year for the next 15 years and to permit $300 to be withdrawn starting at the end of year 6 and continuing over the remainder of the 15-year period as the $300 increases by 6% per year thereafter. That is, the withdrawal at EOY seven will be $318, $337.08 at EOY eight, and so forth for the remaining years. The interest rate is 12% per year. Draw a cash-flow diagram, and find P.

Reference no: EM13213560

Questions Cloud

Determine current amount of money that must be invested : Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity of $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over this entire perio..

Foraging and horticultural societies : Identify and explain the major forms of reciprocity found in both Foraging and Horticultural societies and provide examples regarding how they impact the level of conflict found in these societies.

Recognize the real or potential impact of stakeholder : Describe how the readings and journalling activities influenced your views on workplace ethics and corporate social responsibility. Did you have a shift in your perspective?

Affect communication in areas : How does verbal and nonverbal communication can affect communication in the following areas:

What amount must be invested not to allow withdrawals : An amount, P, must be invested not to allow withdrawals of $1,000 per year for the next 15 years and to permit $300 to be withdrawn starting at the end of year 6 and continuing over the remainder of the 15-year period as the $300 increases by 6% p..

Danny''s skill at hitting a baseball gradually improves : danny's skill at hitting a baseball gradually improves as his attempts produce more frequent and longer-distantce hits. this is an example of

Client’s cash receipts cutoff than the cutoff for sales : Why are the auditors usually less concerned about the client’s cash receipts cutoff than the cutoff for sales? Explain the procedure involved in testing for the cutoff for cash receipts.

Evaluate the effectiveness of no child left behind : "K-12 and NCLB" Please respond to the following: Analyze the proposals for reform in the current K-12 system and determine which single proposal would be the most likely to succeed. Explain your rationale.

What would be the new equilibrium price : Suppose a new manufacturing technology results in an expansion in the supply of electric batteries backup (EBB) in FL of 15%. If the elasticity of demand of EBB sold in FL is -0.4, What would be the new equilibrium price

User Account

All Pages