54 661
Assignments Done
98,2%
Successfully Done
In November 2017
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Finance Question for O Oliver

Question #6197
So far, John and Daphne have accumulated $15,000 in their college savings account (at t = 0). Their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
Expert's answer
At first we need to calculate, how much we will get after 4 year:
FV = ((((15000 + 5000)*1,09+5000)*1,09+5000)*1,09+5000)*1,09 = 46 097,3
Next we find& how large must& be the annual payments using annuity formula:
<img src="data:image/png;base64,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" alt="">
Where PV – present value
A – annual payments
r – interest rate
n - number of years
<img src="data:image/png;base64,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" alt="">
So,& annual payments must& be
<img src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAFAAAAARCAIAAADFd7wzAAABPElEQVRYhe1WyRHDMAhUXRSkeqhGzVCM8vDFKZhJJvEk4WexrHaNhN3mj0X7tIB3x9/wt8ff8JyjN0CSa4TQrjBpF+eiPPI5Rz+r+ljJZcAAuSNCidLwoVfCCYEvje4TEsKlYmMSmnxyUad2crycydGN50hYYJgQGiBJWrsRQ65DVMXkasnxwXblGfWs01HYI13SlPv1Bdha/fZCdkPIkVW7RcPHcnaDFdwRkB+f+HWqE8uP/+YX2QAJzZcMiy6s75nFJ+R1w2p0AlxN3bpRklgxrLu1Pj+EECd9co6vXRgFNEXBAZslw8bfyvDoV4YQNCodELWBqDUkA41HpcPqE7McpKxSPkXkks8d7b5b24PVJ+uMpopEqKGfTC1br0dMQM6TyedvR3oKxA7xwL7zr6X/V/Zk3NawdyFeEQ/0la7+4GFJSAAAAABJRU5ErkJggg==" alt="">

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question