HW 3A

Question 2

This set of problems is designed to be calculated using the Excel or financial calculator. You can also use algebraic formulas. Do not use financial tables to calculate these problems.

You have accumulated some money for your retirement. You are going to withdraw $86,497 every year at the beginning of the year for the next 18 years starting from today. How much money have you accumulated for your retirement? Your account pays you 9.81 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Round the answer to two decimal places.

Your Answer: