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).
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
Problem 1PS
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how to find the amount?
Transcribed Image Text: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).
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