ACCT251E6-15Sol - FV = ? 0 1 2 8 9 FV = $300,000 (FVF 9, 6%...

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EXERCISE 6-15 (15–20 minutes) (a) i = 6% PV = $1,000,000 FV = $1,898,000 0 1 2 n = ? FVF( n, 8% ) = $1,898,000 ÷ $1,000,000 = 1.898 reading down the 6% column, 1.898 corresponds to 11 periods. (b) By setting aside $300,000 now, Lee can gradually build the fund to an amount to establish the foundation. PV = $300,000
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Unformatted text preview: FV = ? 0 1 2 8 9 FV = $300,000 (FVF 9, 6% ) = $300,000 (1.68948) = $506,844Thus, the amount needed from the annuity: $1,898,000 $506,844 = $1,391,156. $? $? $? FV = $1,391,156 0 1 2 8 9 Payments = FV (FV OA 9, 6% ) = $1,391,156 11.49132 = $121,061.46....
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This document was uploaded on 12/03/2009.

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ACCT251E6-15Sol - FV = ? 0 1 2 8 9 FV = $300,000 (FVF 9, 6%...

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