Purchase Solution

Present Value problem

Not what you're looking for?

Ask Custom Question

Find the present value of the annuity necessary to fund the withdrawal of $900 per month for 15 years, if the annuity earns 4% per year. (assume end-of-period withdrawal and compounding at the same intervals as withdrawal.

Purchase this Solution

Solution Summary

The expert examines the present value problem.

Solution Preview

Hi there,

The math formula is:
PVoa = PMT [(1 - (1 / (1 + i)^n)) / i]
where PMT is the payment, i is ...

Purchase this Solution


Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.