The bank at an interest rate


1.You have deposited $21,618 in a special account that has a guaranteed interest rate of 18% per year. If you are willing to completely exhaust the account, what is the maximum amount that you could withdraw at the end of each of the next 9 years?

2.How much would you have to invest today in the bank at an interest rate of 7% to have an annuity of $2,800 per year for 9 years, with nothing left in the bank at the end of the 9 years?

3.Virani Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $2,000, with payments being made at the beginning of each year. If the discount rate is 9%, the present value of the lease payments is.

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Accounting Basics: The bank at an interest rate
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