Q: You are going to withdraw $1,000 at the end of each year for the next...

Question

Question

Q: You are going to withdraw $1,000 at the end of each year for the next 6 years from an account that pays constant interest

business finance

Answer 1

Answer #1

Calculating Present Value,

Using TVM Calculation,

PV = [FV = 0, PMT = 1,000, N = 6, I = 0.15]

PV = $3,748.48

Calculating Value after 5 years,

Using TVM Calculation,

FV = [PV = 3,748.48, PMT = -1,000, N = 5, I = 0.15]

FV = $869.56

Answer 2

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