Question
1. You have accumulated some money for your retirement. You are going to withdraw $97,203 every year at the end of the year for the
1. You have accumulated some money for your retirement. You are going to withdraw $97,203 every year at the end of the year for the next 26 years. How much money have you accumulated for your retirement? Your account pays you 3.5% percent per year compounded annually? To answer this question, you have to find the present value of these cash flows.
2. What is the present value of the following annuity? $689 every half year at the beginning of the period for the next 5 years, discounted back to the present at 8.76 percent per year, compounded semiannually.
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