Please break down step by step how the circled figure was calculated. How did they get 6.41766? Annual withdrawal = $31,500 Period 10 years Interest rate= 9% a) First withdrawal at year-end. Present value of cash flows = Annual withdrawal present value of an rdinary annuity Explanation: present value of an ordinary annuity 10 years, 9% = 6.41766 Present value of cash flows $31,500 x 6.41766 = $202,156.29 Present value of cash flows = $202,156

Please break down step by step how the circled figure was calculated. How did they get 6.41766? Annual withdrawal = $31,500 Period 10 years Interest rate= 9% a) First withdrawal at year-end. Present value of cash flows = Annual withdrawal present value of an rdinary annuity Explanation: present value of an ordinary annuity 10 years, 9% = 6.41766 Present value of cash flows $31,500 x 6.41766 = $202,156.29 Present value of cash flows = $202,156

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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