Accounting Question-Easy

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

A. How much must be invested on January 1,2013 to receive $10,000 for ten years if the first payment is to be taken on January 1, 2023? Assume annual I/R of 6%. 

-show keystrokes used in the form of (N=,I/Y=,PV=,PMT=,FV=)

May 4th, 2015

The question is not clearly, I assume that the money put into the account annualy, then we have 

present values of current $1 investment for 10 years is 8.89, after 10 years it is 8.89/1.06^10 = 4.96 

after 10 years, FV of $1 investment = FV(N=10, I=6%, PV=0, 1)   =13.97

so the payment is 4.96/13.97*10000= $3553.42


   

May 4th, 2015

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