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Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $1,300 per quarter for 20 years, if the account earns 4% per year

Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $1,300 per quarter for 20 years, if the account earns 4% per year

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 5P
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Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.)
$1,300 per quarter for 20 years, if the account earns 4% per year
 
 
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Step 1: Introduction:

The present value of the annuity is the discounted worth that is defined as the process of determining the present value of a payment or a stream of cash flow, which is likely to be received in the future. The time value factor states the change in worth given its capacity to earn interest.

 

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Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.)
$1,300 per quarter for 20 years, if the account earns 4% per year
PV = $
 
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