Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To withdraw $70,000 every year for 5 years with 9%, how much do you need to invest now? -- This is a present value annuity

To withdraw $70,000 every year for 5 years with 9%, how much do you need to invest now? -- This is a present value annuity question from ch 5 because it needs to be withdrawn $70,000 every year for 5 years. -- PV = 70,000 * (1-1/(1+9%)^5)/9%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jane King, Mary Carey

2nd Edition

0198748779, 9780198748779

More Books

Students also viewed these Finance questions