Question

Adams Quincy wants to withdraw $31,300 each year for 12 years from a fund that earns 6% interest.

How much must he invest today if the first withdrawal is at year-end?

How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

First withdrawal at year-end enter a dollar amount rounded to 0 decimal places

First withdrawal immediately enter a dollar amount rounded to 0 decimal places

Answer 1

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Statement showing Computations
Particulars	Amount
invest today if the first withdrawal is at year-end = 31,300*8.38384	262,414
invest today if the first withdrawal takes place immediately = 31300*8.88687	278,159
Time	PVF at 6%
-	1.00000
1.00	0.94340
2.00	0.89000
3.00	0.83962
4.00	0.79209
5.00	0.74726
6.00	0.70496
7.00	0.66506
8.00	0.62741
9.00	0.59190
10.00	0.55839
11.00	0.52679
12.00	0.49697
PVF from Year 0 to 11 Years	8.88687
PVF from Year 1 to 12 Years	8.38384