Question

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5700 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (Use appropriate factor(s) from the tables provided.)

A) $44,013.69

B) $114,000.00

C) $54,150.00

D) $57,000.00

E) $51,442.50

Answer 1

Rate	Rate per period	0.05
NPER	Total No of periods	10
PMT	Payment per period	5700
FV	Future Value	0
TYPE	Ending (0),Beginning(1)	0
PV	Present value	$44,013.69	-PV(0.05,10,5700,0,0)
	(-PV(rate,nper,pmt,fv,type)
The correct option is A