$11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years. The interest rate for the fund is 1.15% compounded annually. How much money needs to be deposited in order to fund this annuity? Use the Present Value of an Ordinary Annuity formula: PV = PMT -(1+i) %3D Express the answer in the proper unit rounded to the nearest cent.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 20E
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$11,000 is to be paid at the end of each year in a legal settlement. The payments
end after 9 years. The interest rate for the fund is 1.15% compounded annually.
How much money needs to be deposited in order to fund this annuity?
Use the Present Value of an Ordinary Annuity formula:
– (1+i)
PV
%3D
Express the answer in the proper unit rounded to the nearest cent.
Transcribed Image Text:$11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years. The interest rate for the fund is 1.15% compounded annually. How much money needs to be deposited in order to fund this annuity? Use the Present Value of an Ordinary Annuity formula: – (1+i) PV %3D Express the answer in the proper unit rounded to the nearest cent.
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