From your prior job, you built up a small retirement account. That account will start paying you cash flows in 7 years. The cash flows will be $27,255 per year and there will be a total of 37 yearly cash flows paid. If the interest rate is 5.5% per year (EAR), what is the value needed in the retirement account now to fund these cash flows? The amount in the account today must be $ (Round to the nearest dollar).

From your prior job, you built up a small retirement account. That account will start paying you cash flows in 7 years. The cash flows will be $27,255 per year and there will be a total of 37 yearly cash flows paid. If the interest rate is 5.5% per year (EAR), what is the value needed in the retirement account now to fund these cash flows? The amount in the account today must be $ (Round to the nearest dollar).

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 7CE

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