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How much do you have to deposit today so that beginning 1 5 years from now you can withdraw $ 1 3 , 0 0
How much do you have to deposit today so that beginning years from now you can withdraw $ a year for the next years periods through plus an additional amount of
$ in that last year period Assume an interest rate of percent. Answer subparts ad below; these break the problem down into smaller parts.
a What is the value of the $ withdrawals in years through at the end of year if the annual interest rate is percent?
Round to the nearest cent.
b What is the present value today of the year $ annuity at the end of year found in part a if the annual interest rate is percent?
Round to the nearest cent.
c What is the present value of the amount of $ withdrawal in year if the annual discount rate is percent?
Round to the nearest cent.
d How much do you have to deposit today so that beginning years from now you can withdraw $ a year for the next years periods through plus an additional amount of
$ in that last year period
$
Round to the nearest cent.
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