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Problem 7 If Bruce needs to withdraw $100 per year over the next 3 years, how much must he deposit today if his account earns
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Answer #1
He should deposit $248.69 today to withdraw $100per year for 3 years
Statement showing Cash flows
Particulars Time PVF 10% Amount PV
Cash flows                      1.00                  0.9091                  100.00                    90.91
Cash flows                      2.00                  0.8264                  100.00                    82.64
Cash flows                      3.00                  0.7513                  100.00                    75.13
Present value of Cash flows                  248.69
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