Answer to Question #280487 in Accounting for Alive

Question

1)    How much money would you need to deposit into a bank account today at 6% per year in order to be able not to work and be able to withdraw $7,000 at the end of each year for the following 15 years?    (2 Points)

Answer 1

$PV=7000\frac{(1+0.06)^{15}-1}{0.06(1+0.06)^{15}}=67985.74$