Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. wishes to make a series of $1,000 cash withdrawals semiannually, beginning on June 30, 2020. Redlands plans to make its sixth and final withdrawal on December 31, 2022. The amount of money Redlands must place into a savings account to meet this objective on January 1, 2020 is $
Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. wishes to make a series of $1,000 cash withdrawals semiannually, beginning on June 30, 2020. Redlands plans to make its sixth and final withdrawal on December 31, 2022. The amount of money Redlands must place into a savings account to meet this objective on January 1, 2020 is $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 11E
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Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.)
|
n = 3; i = 6% |
n = 6; i = 3% |
Future value of 1 |
1.19102 |
1.19405 |
Present value of 1 |
.83962 |
.83748 |
Future value of an annuity |
3.18360 |
6.46841 |
Present value of an annuity |
2.67301 |
5.41719 |
Redlands Inc. wishes to make a series of $1,000 cash withdrawals semiannually, beginning on June 30, 2020. Redlands plans to make its sixth and final withdrawal on December 31, 2022. The amount of money Redlands must place into a savings account to meet this objective on January 1, 2020 is $
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