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Author Question: Ordinary annuity payments occur at the beginning of the period, whereas annuity due payments occur ... (Read 115 times)

P68T

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on: Jul 10, 2018
Ordinary annuity payments occur at the beginning of the period, whereas annuity due payments occur at the end of the period.
 
  Indicate whether the statement is true or false.

Question 2

You have accumulated 800,000 for your retirement. How much money can you withdraw in equal annual beginning-of-the-year cash flows if you invest the money at a rate of 7 for thirty years?
 
  A) 64,469.12
  B) 60,251.52
  C) 8,469.12
  D) 9,061.96


fatboyy09

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: Annuity due cash flows are at the beginning of the period.

Answer to Question 2

Answer: B
Explanation: B)
PMT = PV /  (1 + r)1 = 800,000 /  (1.07)1 = 60,251.52.
MODE = BEGIN
INPUT 30 7 -800,000 ? 0
KEY N I/Y PV PMT FV
CPT 60,251.52


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