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=)
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
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?