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Future Value of an Annuity The following are he present value actors of SL discounted at a for one to five per ds. Each tem
Future Value of an Annuity The following are he present value actors of SL discounted at a for one to five per ds. Each tem is based on 8% nterest discounted annually rom da o withdraw a uture to d ot deposit present Present Value of $1 Discounted at 8% per Period 0.926 0.857 0.794 0.735 0.681 Periods Refer to the present value table information to the above. What amount should Brett have in his bank account today, before withdrawal, if he needs $2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) O a$2,000 + ($2,000 0.926) + ($2,000 x 0.857) + ($2,000 x 0.794) Ob. $2,000x 4 0.735 Oc. ($2,000 x 0.926) + ($2,000 x 0.857) + ($2,000 x 0.794) + ($2,000 x 0.735) Od. $2,000 0.926x4
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