Question

Need guidance on how to solve this annuity problem

Answer 1

The answer is A

Answer 2

I got D..

Answer 3

Bc first we have the formula which is: PV = Pmt * [(1 - (1 + i)^-n) / i]

Answer 4

1. Pmt = $16,000 (this is the annual withdrawal)
2. i = 7% or 0.07 (this is the interest rate)
3. n = 20 years (this is the number of withdrawals)

Answer 5

Then you'll calculate it all together

Answer 6

PV = 16,000 * [(1 - (1 + 0.07)^-20) / 0.07] = 16,000 * 10.594 = $169,504

Answer 7

Then to find out the future value you're gonna use the same formula

Answer 8

1. FV = 169,504
2. i = 7% or 0.07 (interest rate)
3. n = 4 years (number of deposits)

Answer 9

Then you'll calculate the next things:
$169,504 = Pmt * [((1 + 0.07)^4 - 1) / 0.07] * (1+0.07)
$169,504 = Pmt * (4.6548)
Pmt = $36,419.66

Answer 10

Bro💀

Answer 11

I literally said the right answer is A😭

Answer 12

Nah I was explaining how I got D

Answer 13

are you retarded

Answer 14

close the post

Answer 15

i got that, but its none of the answers

Answer 16

thank you for actually trying to help finally bro😭

Answer 17

I did, but i rounded it and 38,186

Answer 18

its a closed post lil bro stop typing

Answer 19

Next reply after this gets deleted, and also gets the post deleted. If the question remains unanswered, make a new one, and only those who want to help answer.