1. Questions

math

Alice wants to know how much she'll have to invest today to receive an annuity of $10,000 for six years if interest is earned at 7% annually. She'll make all of her withdrawals at the end of each year. How much should she invest? A. $45,000 B. $47,665 C. $58,333 D. $55,800
my answer is A.

  1. 👍
  2. 👎
  3. 👁
Diana

  1. Did you solve:
    PV = 10000(1 - 1.07^-6)/.07 ??

    I did not get your answer, but mine was in the list.

    1. 👍
    2. 👎
    👤
    Reiny

Respond to this Question

First Name

Your Response

Similar Questions

  1. language arts

    Read this excerpt from Through The Looking-Glass by Lewis Carroll. “You're wrong THERE, at any rate,” said the Queen: “were YOU ever punished?” “Only for faults,” said Alice. “And you were all the better for it, I

  2. Math

    Tony and Alice are trying to reduce the amount of television they watch. For every hour they watch television , they have to put $2.50 into savings. The table shows how many hours of television Tony and Alice have watched in the

  3. Language Arts

    Read this excerpt from Through The Looking Glass by Lewis Carroll. He shouted this so loud that Alice couldn't help saying, “Hush! You'll be waking him, I'm afraid, if you make so much noise.” “Well, it’s no use YOUR

  4. Math

    Jim Hunter decided to retire to Florida in 10 years. What amount should Jim invest today so that he will be able to withdraw $25,000 at the end of each year for 30 years after he retires. Assume he can invest money at 9% interest

  1. Math

    Ed long promised to pay is son $400 semiannually for 12 years. Assume Ed can invest his money at 6 % in an ordinary annuity. How much must Ed invest today to pay his son $400 semiannually for 12 years?

  2. Pre-Calculus-Trig

    Two surveyors, Joe and Alice, are 240 meters apart on a riverbank. Each sights a flagpole on the opposite bank. The angle from the pole to Joe (vertex) to Alice is 63 degrees. The angle from the pole to Alice(vertex)to Joe is 54

  3. accounting

    Pearson Corporation makes an investment today (January 1, 2012). They will receive $6,000 every December 31st for the next six years (2012 – 2017). If Pearson wants to earn 12% on the investment, what is the most they should

  4. Math

    The Problem: You win the grand prize on a game show. You have the following choices: Option 1: $1-million dollars paid as a $25 000 annuity every year over 40 years. Option 2: The present value of option 1 if the current interest

  1. Physics

    During a track event two runners, Mary, and Alice, round the last turn and head into the final stretch with Mary a distance d = 4.0 m in front of Alice. They are both running with the same speed of v0= 7.0 m/s. When the finish

  2. Math

    James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly payments are $250 and the annuity has an annual interest rate of 7.5%, what will be the value of the annuity when he retires? Would the

  3. MATH

    Please help check my answers to make sure they are correct. I used the "sinking fund payment and present value of an ordinary annuity" formulas to solve this story problem. Thanks! Story: Naomi Dexter is 20 years old. She decides

  4. Math

    Solve the problem. Round to the nearest cent. Joan wants to have $250,000 when she retires in 27 years. How much should she invest annually in her annuity to do this if the interest is 7% compounded annually? A) $1861.10 B)

You can view more similar questions or ask a new question.