SOLUTION: Please someone help!!! Find the present value PV of the annuity necessary to fund the withdrawal given. Round your answer to the nearest cent. $1,000 per quarter for 10 years,

Question 1071060: Please someone help!!!
Find the present value PV of the annuity necessary to fund the withdrawal given.
Round your answer to the nearest cent.
$1,000 per quarter for 10 years, if the annuity earns 6% per year
PV = $ ?
Found 2 solutions by rothauserc, MathTherapy:
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
We want to get $4000 each year for 10 years
:
PV = 4000 * [ (1 - (1 + i)^-n) / i ], where i is interest and n is number of payments
:
PV = 4000 * [ (1 - (1 + 0.06)^-10) / 0.06 ] = $29440.35
:

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!
Please someone help!!!
Find the present value PV of the annuity necessary to fund the withdrawal given.
Round your answer to the nearest cent.
$1,000 per quarter for 10 years, if the annuity earns 6% per year
PV = $ ?

You need to use the following formula for the present value of an ORDINARY ANNUITY, or: , where:
= Present Value of the ORDINARY ANNUITY (Unknown, in this case)
= Payment, per period ($1,000, in this case)
= Annual Interest rate (6%, or .06, in this case)
= Number of ANNUAL compounding periods (quarterly, or 4, in this case)
= Time, in years (10, in this case)
When calculated,
RELATED QUESTIONS
Please help! Find the present value PV of the annuity necessary to fund withdrawals of (answered by Theo)
The present value of an annuity is given. Find the periodic payment. (Round your final... (answered by addingup)
The present value of an annuity is given. Find the periodic payment. (Round your final... (answered by addingup)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity... (answered by ElectricPavlov,ikleyn)
Please help me solve this word problem about Simple Interest: The compounding periods... (answered by ikleyn)
Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) (answered by Theo)
Find the present value of the ordinary annuity. Please round the answer to the nearest... (answered by randyjoseph7)
Can someone please help me solve this ? Thank you! Find the value of annuity.... (answered by rothauserc)
Calculate the present value of the annuity. (Round your answer to the nearest cent.)... (answered by Theo)