You estimate that it will take five years to complete your university education. Your parents want to invest enough money today at 12 per cent to enable you to withdraw $5000 at the end of each year for the next five years with nothing left at the end of the five-year period. How much money do they need today?

$18,023.88

Step-by-step explanation:

The amount they would need today can be determined by finding the present value of the 4 year annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 5 = $5000

I = 12%

PV = $18,023.88

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

-3

step-by-step explanation:

a drawing really does here:

so i draw the horizontal line y=2 and the vertical line x=-2 at this intersection i put b (this is where my right angle is going to be).   so point b is at (-2,2).   point a is 5 units long and is also on y=2 so this point has to be (3,2) or (-7,2) -doesn't matter i will go with (3,2).

now we know c is at (-2,y) we don't know the y yet bet we know that c is on x=-2.

we have the area of the triangle is .5bh=12.5

we know the base length is 5 (ab)

we have the height is (2-y) if you look at your

plug in

.5(5)(2-y)=12.5

solve for y to get the y-coordinate for c

2.5(2-y)=12.5

divide both sides by 2.5 giving:

2-y=5

now subtract 2 on both sides

-y=3

y=-3

yes

step-by-step explanation: