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##### Pls help: Ques. 23) Ed Sloan wants to withdraw $2...

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Pls help: Ques. 23) Ed Sloan wants to withdraw $25,000 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the first year if the fund earns 10% compounded annually? a. $25,000 times the future value of a 5-year, 10% ordinary annuity of 1. b. $25,000 divided by the future value of a 5-year, 10% ordinary annuity of 1. c. $25,000 times the present value of a 5-year, 10% ordinary annuity of 1. d. $25,000 divided by the present value of a 5-year,10% ordinary annuity of 1. Ques. 24) What amount will be in a bank account three years from now if $5,000 is invested each year for four years with the first investment to be made today? a. ($5,000 x 1.260) + ($5,000 x 1.166) + ($5,000 x 1.080) + $5,000 b. $5,000 x 1.360 x 4 c. ($5,000 x 1.080) + ($5,000 x 1.166) +($5,000 x 1.260) + d. ($5,000 x 1.360) e. $5,000 x 1.080 x 4 Ques. 25) On January 1, 2004, Carly Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $30,000 at 9% each January 1 beginning in 2004. What will be the balance in the fund, within $10, on January 1, 2009 ( one year after the last deposit)? The following 9% Interest factors may be used. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 4 periods 3.2397 4.5731 5 periods 3.8897 5.9847 6 periods 4.4859 7.5233 a. $195,699 b. $179,541 c. $163,500 d. $150,000

Paper#13690 | Written in 18-Jul-2015

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