For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. What lump sum of money must be deposited into a bank account at the present time so that $5,000 per year can be withdrawn for 12 years, with the first withdrawal scheduled for 6 years from today?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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A:

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Q: Please show work

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Q: What are two steps taken to find the AE, when cash flow has no special pattern?

A: The first step is convert the cash flow to present value by using the below formula.

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A: True

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