Please give me answer general accounting question John plans to withdraw $36,000 annually from his retirement account for 20years. If he expects an average annual return of 8.5%, how much money doeshe need to have in his account today?A) $352,456.78B) $340,680.12C) $338,945.65D) $345,789.23E) $349,567.89

Step 1:The money he needs to have in his account today is equal to the present value of the annual…

Answered: John plans to withdraw $36,000 annually…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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John plans to withdraw $36,000 annually from his retirement account for 20 years. If he expects an average annual return of 8.5%, how much money does he need to have in his account today? A) $352,456.78 B) $340,680.12 C) $338,945.65 D) $345,789.23 E) $349,567.89