The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years from now at an interest rate of 10% per year is closest to: (A) $9,300 (B more than $10,000 less than $6,500 D $8,500

The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years from now at an interest rate of 10% per year is closest to: (A) $9,300 (B more than $10,000 less than $6,500 D $8,500

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years from now at an interest rate
of 10% per year is closest to:
A $9,300
B more than $10,000
less than $6,500
D $8,500

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