SOLUTION WITH CASH FLOW DIAGRAM PLS 4.What lump sum of money must be deposited into a bankaccount at the present time so that $5,000 per year can bewithdrawn for 12 years, with the first withdrawal scheduled for 6years from today? The interest rate is 8% per year.

In this we need to calculate the present value of all options.

What lump sum of money must be deposited into a bank unt at the present time so that $5,000 per year can be drawn for 12 years, with the first withdrawal scheduled fo s from today? The interest rate is 8% per year.

What lump sum of money must be deposited into a bank unt at the present time so that $5,000 per year can be drawn for 12 years, with the first withdrawal scheduled fo s from today? The interest rate is 8% per year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

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SOLUTION WITH CASH FLOW DIAGRAM PLS

4.
What lump sum of money must be deposited into a bank
account at the present time so that $5,000 per year can be
withdrawn for 12 years, with the first withdrawal scheduled for 6
years from today? The interest rate is 8% per year.

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