Item 6

Item 6

How much would you need to deposit now in a savings account that earns 9% interest, compounded annually, in order to withdraw $5,500 at the end of every year for ten years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

Multiple Choice

• $44,308

• $35,297

• $55,000

• $44,188