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Your goal is to be able to withdraw $12,000 for each of the next seven years...

Your goal is to be able to withdraw $12,000 for each of the next seven years beginning one year from today and also to withdraw $40,000 ten years from today. The return on the investment is expected to be 6%. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

$89,325.

$71,564.

$125,463.

$66,989.

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Answer #1

Ans $ 89325

The amount that needs to be invested today is closest to $ 89325

Present value of $ 12000 withdrawn in each 7 years Annuity PV Factor (End of Period) = P[1-(1+r)^-n] 12000* (1-(1/(1+6%)^7)))

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