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How much money will have to put in the bank today to be able to withdraw...

How much money will have to put in the bank today to be able to withdraw $6,000 per year for the next 8 years assuming 12% intreat.

A 29,805
B 73,798
C 48,000
D 6,720
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Answer #1

PMT =6000
Rate =12%
Number of Years =8
PV =PMT*((1-(1+r)^-n)/r =6000*((1-(1+12%)^-8)/12%) =29805

Option a is correct option

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