Question

You want to set up a payout annuity so that you can withdraw $ 16,000 per year for the next 20 years. Assume your account wil
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Answer #1

We can achive this by finding out the present value

(Note- enter the answer as per the required decimals. If no decimals are required enter 169,504. Comment if you face any issues)

Year Annual amount PV Factor Present Value
1 / (1+7%)^Year
1 $            16,000                   0.935       14,953.27
2 $            16,000                   0.873       13,975.02
3 $            16,000                   0.816       13,060.77
4 $            16,000                   0.763       12,206.32
5 $            16,000                   0.713       11,407.78
6 $            16,000                   0.666       10,661.48
7 $            16,000                   0.623         9,964.00
8 $            16,000                   0.582         9,312.15
9 $            16,000                   0.544         8,702.94
10 $            16,000                   0.508         8,133.59
11 $            16,000                   0.475         7,601.48
12 $            16,000                   0.444         7,104.19
13 $            16,000                   0.415         6,639.43
14 $            16,000                   0.388         6,205.08
15 $            16,000                   0.362         5,799.14
16 $            16,000                   0.339         5,419.75
17 $            16,000                   0.317         5,065.19
18 $            16,000                   0.296         4,733.82
19 $            16,000                   0.277         4,424.13
20 $            16,000                   0.258         4,134.70
169,504.228
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