Value of an Annuity
Response to the following problem:
Using the appropriate tables, solve each of the following:
Required
1. Beginning December 31, 2011, five equal withdrawals are to be made. Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually on December 31, 2010.
2. Ten payments of $3,000 are due at annual intervals beginning June 30, 2011. What amount will be accepted in cancellation of this series of payments on June 30, 2010, assuming a discount rate of 14% compounded annually?
3. Ten payments of $2,000 are due at annual intervals beginning December 31, 2010. What amount will be accepted in cancellation of this series of payments on January 1, 2010, assuming a discount rate of 12% compounded annually?