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Contemplating retirement an individual wants to create a fund on an 5% basis allowing $24,000. annual withdraws for 20 years. How much must the balance of the fund equal to allow the $ 24,000. equal annual withdraws beginning one year hence?  Following are appropriate factors from tables:    Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 5%/20 13.08532 12.46221 .37689 33.06595

Contemplating retirement an individual wants to create a fund on an 5% basis allowing $24,000. annual withdraws for 20 years. How much must the balance of the fund equal to allow the $ 24,000. equal annual withdraws beginning one year hence?  Following are appropriate factors from tables:    Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 5%/20 13.08532 12.46221 .37689 33.06595

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 44

  1. Contemplating retirement an individual wants to create a fund on an 5% basis allowing $24,000. annual withdraws for 20 years. How much must the balance of the fund equal to allow the $ 24,000. equal annual withdraws beginning one year hence?  Following are appropriate factors from tables:

       Table

    %   /  n

    Present Value of annuity due $1

    Present Value of ordinary annuity of $1

    Present value of $1

    Future Value of ordinary annuity of $1

    5%/20

    13.08532

    12.46221

    .37689

    33.06595
       

    $316,127.54
       

    $320,975.78
       

    $299,093.04 
       

    $314,047.68

     

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