Business Finance
Chapter 5 Opportunity Costs and the Time Value of Money
5.5 The Present Value of a Series of Amounts (Annuity)
The Present Value of a Series of Amounts Annuity - Business Finance - ثاني ثانوي
PART 1
Chapter 1 An Introduction to Basic Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
Chapter 3 Analysis of Financial Statements
PART 2
Chapter 4 An Introduction to Financial Markets
Chapter 5 Opportunity Costs and the Time Value of Money
Chapter 6 Risk and Its Measurements
Chapter 7 Stock and Bonds
Amounts (Annuity)
What is the present value of a SAR 100 withdrawal at the end of the next three years for money earning 10%?
How much must Omer deposit today if he wants to take SAR 400 out of an investment account each year for nine years for money earning an annual rate of 8%?
If Ali needs to withdraw SAR 100 every year for five years from an account that earns 6%, how much does he need to invest now?
If Sara needs to withdraw SAR 250 every year for seven years and the account earns 7%, how much must she invest now?
Present value of a series may be used by a person who wants to withdraw an amount each year for a certain number of years.
The present value of a series requires calculating the amount set aside today to allow regular future withdrawals.
