Annuities and sicking funds
posted by Scott Ingraham .
Jane forest wants to receive yearly payments of 15000.00 for 10 years. How much must she deposit at her bank today at 11% intrest compouned annually?
I have fugured it to be as follows and could someone tell me if i am right.
15000.00 Future Value
N 10x1=10
I/Y 11% / 1=11
cpt=pmt is this right or am ai fuguring it wrong here Help please

P = N * [1  (1+r)^n]/r
P = 15,000 * [1  (1.11)^10]/.11
P = 88,338
equivalently
P = N * [(1+r)^n 1]/[r*(1+r)^n]
P = 15,000 [ (1.11)^10 1 ] / [.11*(1.11)^10]
P = 15,000 [ 1.84 /.312] = 88,338 
I think you mean sinking funds and not sicking funds, although during these hard times either may be true.

Here is a link to the present value of a future annuity
http://en.wikipedia.org/wiki/Annuity_%28finance_theory%29
Look at
P \,=\,R\left[\frac{1\frac{1}{\left(1+i\right)^n}}{i}\right] = R\cdot a_{\overline{n}i} 
I figured that sicking fund was a typo, but perhaps it was in GE stock.
Respond to this Question
Similar Questions

Annuities
Jane Frost wants to receive yearly payments of 15000 for 10 years. How much must she deposit at her bank today at 11% intrest compounded annually? 
Annuities
Jany frost wants to receive yearly payments of 15000 for 10 years. How much must she deposti at her bank today at 11% intrest compounded annually? 
Annuities and sicking funds
Janet Woo decided to retire to fla. in 6 years. What amount should Janet invest today so she can withdraw 50000.00 at the end of each year for 20 years after she retires? 
maths
how much must i deposit today so that i can have 4700 in tow years time if the bank pays 5% compound interest yearly 
Please help!
If your bank paid simple intrest Of 4.25% compounded annually how much intrest would you earn after three years on an initial deposit of $750. 
Annuities
Sanka Blunck wants to receive $8,000 each year for 20 years. How much must Sanka invest today at 4% interest compounded annually? 
Business math
Jimmy wants to buy a jeep in 5 years. If his bank pays 12% interest compounded annually, what must jimmy deposit today to have 15,000 in 5 years? 
math
Jeanette wishes to retire in 30 years at age 55 with retirement savings that have the purchasing power of $300,000 in today’s dollars. 1. If the rate of inflation for the next 30 years is 2% per year, how much must she accumulate … 
Finance
Juan and Rachel Burpo plan to buy a timeshare in six years of $16,860. In order to have adequate funds to do so, the Burpo want to make a deposit to their money market fund today. Assume that they will be able to earn an investment … 
Corporate Finance
Jason's opportunity cost rate is 8 percent compounded annually. How much must he deposit in an account today if he wants to receive $5,400 at the end of each of the next 10 years?