The amount that Person X will set aside every year to make sure that there is $2 million on his account on his 65 th birthday. Introduction: The present value is an amount that an individual has to make an investment at present in order to generate the cash flow in future. The present value of the cash flows can be computed by adding the cash flow of every stream.

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Chapter 4, Problem 41P

Summary Introduction

To determine: The amount that Person X will set aside every year to make sure that there is $2 million on his account on his 65^th birthday.

Introduction:

The present value is an amount that an individual has to make an investment at present in order to generate the cash flow in future. The present value of the cash flows can be computed by adding the cash flow of every stream.

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